Medical Centre Enters into a Contract with Local Motion Fitness

question 22

Multiple Choice

Medical Centre enters into a contract with Local Motion Fitness Club for discounted memberships for the Centre's employees.If the Club breaches the contract and the Centre enters into a contract with KO Sports for the same service at a lower price,the Centre might be awarded nominal damages to

• A)establish,as a matter of principle,that the Club acted wrongfully.
• B)provide the Centre with funds for a foreseeable loss beyond the contract.
• C)provide the Centre with funds for its loss of the bargain.
• D)punish the Club and set an example to deter others from similar acts.

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Definitions:

Actual Cost

The total expense incurred for a project, activity, or item, reflecting the real financial expenditure.

Cost Variance

The difference between the budgeted or estimated cost of a project and the actual cost incurred.

Cost Performance Index

A measure in project management that calculates the efficiency of budget utilization by dividing the earned value by the actual costs.

Schedule Variance

The difference between the planned and the actual project progress, indicating whether a project is ahead or behind schedule.