Mr Black Enters into a Contract with Build-It Construction Ltd

question 13

Multiple Choice

Mr. Black enters into a contract with Build-It Construction Ltd. for the construction of a house. The house is not built in accordance with the contract. Mr. Black sues Build-It Construction Ltd. seeking $200,000 in damages. He is successful, but discovers that Build-It Construction Ltd. has insufficient assets to satisfy the judgment as it regularly transfers its assets to its parent company Build-It Holding Company Inc. Can Mr. Black collect the $200,000 from Build-It Holding Company Inc.

• A) Yes, according to the doctrine of promissory estoppel.
• B) Yes, according to the Statute of Frauds.
• C) Yes, this is a statutory novation.
• D) No, according to the doctrine of privity of contract.
• E) No, according to the parol evidence rule.