MrWicks,a Plumber,had a Contract to Repair a Slow Leak in a Toilet

question 59

Multiple Choice

Mr.Wicks,a plumber,had a contract to repair a slow leak in a toilet in Dr.Bone's medical clinic.Because it had to be done when no patients were there,Mr.Wicks agreed to come on a Saturday.However,when he got there,he found a notice on the door saying "Got a chance for a free trip to Hawaii.Come next Saturday at the same time.Thanks.Dr.Bone." Mr.Wicks did not turn up the next Saturday and,when Dr.Bone called to find out why,Mr.Wicks said he had promised to take his wife shopping that day,and he doubted if he would be able to find the time in the future.

• A)Dr.Bone breached the contract on the first Saturday.
• B)Mr.Wicks breached the contract on the second Saturday.
• C)Neither man has breached the contract;it is simply suspended.
• D)The contract was not breached since it was frustrated on the first Saturday because Dr.Bone.could not be there.
• E)a and b.

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Definitions:

Balance Sheet

A report detailing a corporation's assets, liabilities, and equity held by shareholders at a particular moment.

Equity

Ownership interest in a company, represented by shares, which gives shareholders a claim on part of the company's assets and earnings.

Equity Financed

The method of raising capital through the sale of shares in a company.

Retained Earnings

The portion of a company’s profit that is held back and not distributed to shareholders as dividends, to be reinvested in the business.