When Contractual Claims Are Defaulted Due to the Failure of a Project

question 23

Multiple Choice

When contractual claims are defaulted due to the failure of a project to be completed and delivered:

• A)The client firm should file an ex-gratia claim.
• B)The client firm may have some legal claim to punitive damages.
• C)The project firm should file an ex-gratia claim.
• D)The project firm may have some legal claim to recovery.

---

Definitions:

Void Contract

A contract that has no legal force or effect and cannot be enforced by either party.

Legal Obligations

Duties imposed by law requiring individuals or organizations to comply with legal standards and regulations.

Operation of Law

Changes in legal status or rights triggered automatically by law, not requiring action by individuals.

Courts

Institutions that interpret and apply the law to resolve disputes.