Fred's Flooring (FF)contracted with Harry Homeowner to Install Wood Flooring

question 11

Multiple Choice

Fred's Flooring (FF) contracted with Harry homeowner to install wood flooring throughout Harry's home.Harry was to purchase the flooring,and the contract was solely for installation.Payment was to be 20 percent at the time that the work commenced and 80 percent once the flooring was installed.Harry purchased the flooring materials and paid the 20 percent,so FF began work.When FF's work was halfway completed,Harry realized that he didn't have the money to pay FF on completion,so he bolted the doors and refused access.If FF wants to rescind the contract and be paid for work completed,FF would sue for

• A) compensatory damages.
• B) consequential damages.
• C) restitution.
• D) liquidated damages.

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Definitions:

Credit Terms

The conditions under which credit will be extended to a customer, including payment deadlines and discounts for early payment.

Invoice Price

The price listed on an invoice for purchased goods or services, before any discounts, allowances, or additional charges are applied.

Net Realizable Value

Net Realizable Value is the estimated selling price of goods minus the estimated cost of completion and sales expenses.

Accounts Receivable

Unpaid amounts by customers for goods or services already supplied by a company.