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For the next set of multiple choice guestions, consider a construction contract between a builder and a client, where V = $20,000 R = $1,000
For the next set of multiple choice guestions, consider a construction contract between a builder and a client, where V = $20,000 R = $1,000 P = $15,000 V = the client's value of performance; R = the client's reliance investment; and P =the contract price, payable on performance. Suppose that at the time the contact was made, the cost of performance to the builder is uncertain, but it was known that it will definitely take one of the following values: C={$10,000; $14,000; $18,000; $22,000}. d__ 23. It is efficient for the builder to breach this contract if it turns out that (a) C=%$10,000 (b) C=$14,000 (c) C=$18,000 (dy =%22,000. __b_ 24, Calculate the amount of expectation damages for this example. It is equal to: {a) 31,000 {b) $5.000 (c) 315,000 (d) $20,000 __d_25. Under expectation damages, the builder will breach the contract rather than perform if C equals (a) $10,000 (b) $14,000 {c) $18,000 (dy $22,000
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