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:

Malaysian Palm Oil

A commodity produced from the fruit of the oil palm primarily in Malaysia, used in a variety of food products, cosmetics, and biofuels.

Translation Statement

A document or financial report generated by converting the accounts of a business from one currency to another.

Issued Capital

The total value of a company's shares that have been sold and are held by shareholders.

Malaysian Palm Oil

A significant agricultural commodity produced in Malaysia, used globally in food, cosmetic, and energy industries, notable for its economic impact.