If a Party Has Completely Failed to Perform Contractual Obligations

question 6

Multiple Choice

If a party has completely failed to perform contractual obligations within the time specified:

• A) the nonbreaching party is not required to pay under any circumstances.
• B) the nonbreaching party may be required to pay for the work that has already been completed.
• C) the contract is terminated.
• D) the contract may be terminated only under certain conditions.

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Definitions:

Market Value

The present cost at which a service or asset is available for purchase or sale in the market.

Stock Dividend

A dividend payment made in the form of additional shares rather than cash, increasing the total number of shares owned by shareholders.

Comprehensive Income

A measure of all changes in equity of a company that result from recognized transactions and other economic events of the period other than those resulting from investments by and distributions to owners.

Net Income

The total earnings of a company, subtracting all expenses from revenues, including taxes and costs, over a specific period.