A Homebuilder,Jim,accepts an Entire Contract from Mark to Build a House

question 69

Multiple Choice

A homebuilder,Jim,accepts an entire contract from Mark to build a house for $500 000 on his property.Half way through the job,the builder's material and money run out and Jim is unable to finish the job.He chooses to leave the worksite indefinitely.A year later,Jim returns to find the house on Mark's property fully completed.Jim then asks Mark to pay for the work that he completed before leaving the worksite.Mark refuses to pay.Which of the following is true?

• A)Mark has to pay Jim $250 000 for the substantial performance.
• B)Mark can use his discretion to decide how much to pay Jim.The payment must be under $500 000.
• C)Mark owes Jim $0 for the work he did on the house,but he may owe Jim for using his building materials.
• D)Mark has to pay Jim $500 000 for the substantial performance.
• E)Mark owes Jim $0 because $500 000 would be considered an unreasonable price.

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Definitions:

Plan Of Action

A detailed strategy outlining the steps needed to accomplish a specific goal or objective.

Little To No Involvement

Refers to situations or contexts where individuals or groups contribute minimal effort or have minimal participation.

Achieving Goals

The process of setting objectives and taking steps to accomplish them within a specified timeframe.

Quarterly Estimated Tax Payments

Tax payments made quarterly by individuals and businesses on income not subject to withholding, including self-employment income.