What does the term "substantial performance" mean? What factors are generally considered when determining whether one of the parties has substantially performed?
Substantial performance occurs when one party fulfills enough of its contract obligations to warrant payment. In other words, it is performance that is less than perfect, yet it complies with the essential purpose of the contract. In a contract for services, a party that substantially performs its obligations will receive the full contract price minus the value of the defects. The following factors are often considered: How much benefit has the promisee received? If it is a construction contract, can the owner use the thing for its intended purpose? Can the promisee be compensated with money damages for the defects? Did the promisor act in good faith?
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Indicate whether the statement is true or false
Normal costing:
a. determines unit cost by adding direct materials, direct labor and actual overhead. b. determines unit cost by adding direct materials, direct labor and estimated overhead. c. determines unit cost by adding direct materials, direct labor and underapplied overhead. d. determines unit cost by adding direct materials, direct labor and subtracting overapplied overhead. e. None of the answers are correct.
Which of the following stages has high revenue growth but does not show a profit?
A) seed/start-up stage B) early stage C) expansion stage D) later stage
For the doctrine of strict liability to apply:
a. a consumer must have purchased the product directly from the manufacturer b. a consumer need not have purchased the product directly from the manufacturer c. a consumer must suffer life threatening injuries d. a manufacturer must not intentionally misrepresent the product e. none of the other choices are correct