A Construction Contractor Entered into a Contract to Build a Family

question 21

Multiple Choice

A construction contractor entered into a contract to build a family room addition onto Harry's home for $25,000.In order to encourage timely performance,the agreement provided that the contractor would be penalized $2,000 as liquidated damages for each day that the project was late in getting finished.The contractor was 30 days late in finishing the project,but otherwise met the terms of the agreement.What is most likely in this situation?

• A) The liquidated damages clause would not be enforced due to its being excessive.
• B) The liquidated damages clause would be limited to $25,000,the amount of the contract price.
• C) The liquidated damages clause would be enforced.
• D) The liquidated damages clause would not be enforced because the parties made a mutual mistake about when the contract would be finished.

Acknowledge the theoretical versus practical attainability of productive efficiency in an economy.

Identify conditions that may shift the production possibilities curve and understand such shifts’ implications.

Examine the historical economic states to understand contemporary economic principles and apply theoretical knowledge to practical situations.

Understand how to record sales and sales taxes in journal entries.

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Definitions:

Leisure Time

The time available for ease and relaxation outside of compulsory activities such as work and essential household tasks.

Using Resources

The process of employing available assets and materials to achieve desired goals and objectives.

Unattainable Point

A situation or position in economic models that cannot be reached given the current resources and technology.

Trading

The act of buying, selling, or exchanging goods, services, or financial assets in a market.