Max Has Contracted with Lew to Have His House Painted

question 18

Multiple Choice

Max has contracted with Lew to have his house painted. The contract specifically stated that the job was to be completed by August 25. Lew completes the job on August 26. Max has suffered no loss due to the delay. The job was otherwise done exactly to all contract requirements and specifications. If Max sues Lew for breach of contract due to the missed completion date and if the courts were to award damages, what type of damages would most likely be awarded?

• A) punitive damages
• B) consequential damages
• C) restitution
• D) nominal damages

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Definitions:

Grace Period

A time frame after a due date during which a payment can be made without penalty or impact on credit standing.

Interest Charges

The cost incurred by borrowing money, expressed as a percentage of the total amount borrowed, paid to the lender as compensation.

Accounting Issues

Accounting Issues encompass any uncertainties, complexities, or challenges that arise in the practice of accounting, including interpretation of standards, error correction, and ethical considerations.

Accounts Receivable

Funds that customers owe to a business for products or services that have been provided but not yet compensated for.