Although the Contract Called for the Delivery of Three Manuals

question 3

Multiple Choice

Although the contract called for the delivery of three manuals, the writer had put so much effort into the first two that the buyer agreed to pay the whole contract price, $3000, for the two instead of the three manuals. Which of the following stops the buyer from later suing the writer for breach of contract and demanding the completion of the third manual?

• A) Doctrine of quantum meruit
• B) No consideration given by the writer
• C) Promissory (equitable) estoppel
• D) He only has to pay a reasonable price for the work done.
• E) He doesn't have to pay anything because the job was not completed, and so he can even get back what he paid.

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Definitions:

Variable Cost

Expenses that are directly linked to the scale of production activity.

Fixed Cost

Costs that do not change with the level of output or sales in the short term, such as rent, salaries, and insurance.

Depreciation Expense

The portion of the total cost of a tangible asset that is charged as an expense in a reporting period, due to its reduction in useful life.

Sensitivity Analysis

A technique used to determine how different values of an independent variable impact a particular dependent variable under a given set of assumptions.