Regarding the Appropriate Amount of Damages,if Any,which of the Following

question 23

Multiple Choice

Regarding the appropriate amount of damages,if any,which of the following statements is true regarding the effect Michael's failure to meet his obligations under the building contract?

• A)Ashton will not have to pay for the house because Michael failed to perform as required.
• B)Ashton is released from paying for the house because of the anticipatory breach.
• C)Even though Michael substantially performed,Ashton will not have to pay for the house because Michael materially breached the contract.
• D)Any damages awarded would be in the range of $300,the amount it would take to fix the breach.
• E)There are no damages because Michael did not breach the contract.

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Definitions:

Factory Overhead

Every manufacturing-related expense excluding the costs of direct materials and direct labor.

Direct Materials

Raw materials that are directly used in the production of goods, identifiable as part of the finished product.

Factory Supervisor

An individual responsible for overseeing the operations and workers in a manufacturing plant or a section thereof.

Indirect Cost

Costs that are not directly traceable to a specific project, product, or activity and usually include overheads such as administration and utilities.