Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer correct calculation asap plz both are questions For the next set of multiplechoice questions, consider a construction contract between a builder and a

image text in transcribed

Please answer correct calculation asap plz both are questions

image text in transcribed
For the next set of multiplechoice questions, consider a construction contract between a builder and a client, where V: $10,000 R = $1,000 P: $5,000 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={$5.000; $7,000; $9,000; $11,000}. ___ 23. It is efficient for the builder to breach this contract if it turns out that C=$5,000 C=$7,000 C=$9,000 C=$11,000. _ 24. Calculate the amount of expectation damages for this example. It is equal to: $1,000 55.000 510,000 $15,000 ___ 25. Under expectation damages, the builder will breach the contract ratherthan perform if Cequals 55.000 $7,000 $9,000 $11,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Principles Microeconomics

Authors: Tyler Cowen, Alex Tabarrok

4th Edition

1319098762, 978-1319098766

More Books

Students also viewed these Economics questions

Question

2. What we can learn from the past

Answered: 1 week ago

Question

2. Develop a good and lasting relationship

Answered: 1 week ago