If a Party Has Completely Failed to Perform Contractual Obligations

question 6

Multiple Choice

If a party has completely failed to perform contractual obligations within the time specified:

• A) the nonbreaching party is not required to pay under any circumstances.
• B) the nonbreaching party may be required to pay for the work that has already been completed.
• C) the contract is terminated.
• D) the contract may be terminated only under certain conditions.

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Definitions:

Federal Income Tax

The tax levied by the United States Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.

Dividend Income

Earnings distributed to shareholders from a portion of the company's earnings.

Rental Income

Earnings received from renting out property or equipment, often considered a stable source of income.

Additional Debts

Any debts incurred by a company or individual in addition to their existing debt, potentially affecting their creditworthiness.