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ale4655 [162]
3 years ago
5

Construction contracts often include a provision awarding damages to the buyer at "X" amount of dollars per day for each day the

builder is late in completing the work. The parties to the contract agree on this amount in advance because they know the buyer will incur added costs, or will lose profits, because of the delay. If the amount fixed for the damages is unreasonably high, the court will consider it a ______ and will not enforce it.
Business
1 answer:
jekas [21]3 years ago
7 0

Construction contracts often include a provision awarding damages to the buyer at "X" amount of dollars per day for each day the builder is late in completing the work. The parties to the contract agree on this amount in advance because they know the buyer will incur added costs, or will lose profits, because of the delay. If the amount fixed for the damages is unreasonably high, the court will consider it a <u>Penalty</u>  and will not enforce it.

Explanation:

<u>"Construction Contract" can be defined as  a combination of various  individual documents which focuses on  the different aspect of the project, or it can also be a  multi-page document which contains various  sections that offers details on different aspects of the agreement.</u>

<u />

A construction contract includes

  • Name of contractor and contact information.
  • Name of homeowner and contact information.
  • It describes property in legal terms.
  • The various list of  attachments of the contract.
  • The cost involved
  • Description of the work and its completion date.
  • Right to stop the project.
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Barker Company paid cash to purchase two identical inventory items. The first purchase cost $18.00 cash and the second cost $20.
Virty [35]

Answer:

The correct answer is D

Explanation:

Cash flow method is the method where the costs or the expenses are moved or shifted from the starting to the end of the firm. The flow of expenses does not apply to the inventory but also involve the other factors in the extra processes to which the cost is attached.

So, the baker purchased the inventory items at different prices and then the sold the one inventory item at profit, so the amount of the cash flow from the operating activities will not affected through the method of cash flow.

8 0
3 years ago
Marathon Company has 10,000 units of its product that were produced last year at a total cost of $150,000. The units were damage
V125BC [204]

Answer: Marathon should repair the units since an income of $12000 will be gotten.

Explanation:

Based on the information given, the following can be deduced:

Revenue when repaired = 10000 × $5 = $50000

Revenue if sold without repair = 10000 × $2 = $20000

Incremental revenue = $50000 - $20000 = $30000

Cost to repair = $18000

Incremental be Income = $30000 - $18000 = $12000

Therefore, Marathon should repair the units since an income of $12000 will be gotten.

8 0
3 years ago
On March 1, Terrell &amp; Associates provides legal services to Whole Grain Bakery regarding some recent food poisoning complain
zzz [600]

Answer:

March 1

Dr Notes Receivable $10,900

Cr Service Revenue $10,900

September 1

Dr Cash $11,390

Cr Notes Receivable $ 10,900

Cr Interest Revenue $490

Explanation:

March 1

Dr Notes Receivable $10,900

Cr Service Revenue $10,900

(Provide legal services and accept note)

September 1

Dr Cash $11,390

Cr Notes Receivable $ 10,900

Cr Interest Revenue $490

(Receive cash on note receivable and interest)

(Interest revenue = $10,900 x 9% x 6/12) =490.5

6 0
3 years ago
Which type of interest can earn more money over the long term?
guajiro [1.7K]
Compound interest would be the correct answer.
4 0
1 year ago
On Jan. 2, Callie Company received a $700 payment from a customer previously billed for services performed. The journal entry to
Lerok [7]

Answer:

Cash and equivalents $700 Debit*

Accounts Receivables $700 Credit*

Explanation: The cash represents a debit because we are receiving the cash from a sale already made and the credit is made accounts receivable, because the product was previously sold only that a payment term was given to the person who is currently fulfilling, then the account receivable becomes cash as part of the company's operating cycle.

7 0
3 years ago
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