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Kruka [31]
3 years ago
11

The painter contracts to paint the exterior of the home for $1,750 plus the cost of paint and any other necessary materials. Abo

ut three-fourths of the way through the job, the contractor breaks his leg and can't finish. The owner offers to pay the contract price less deductions for the cost of having the job completed by another painter, and the original painter accepts the offer. The contract has been discharged under the principle of
Business
1 answer:
yawa3891 [41]3 years ago
8 0

Answer:

substantial performance.

Explanation:

From the question we are informed about painter which contracts to paint the exterior of the home for $1,750 plus the cost of paint and any other necessary materials. About three-fourths of the way through the job, the contractor breaks his leg and can't finish. The owner offers to pay the contract price less deductions for the cost of having the job completed by another painter, and the original painter accepts the offer. In this case, the contract has been discharged under the principle of substantial performance.

Substantial performance can be regarded as a term that is been

used as regards contract law, it is a principle that can be explained as

degree of performance of a contract that is not regarded as complete or full performance, but regarded as nearly equivalent which will be considered to be unfair if the contractor is denied the agreed payment in the contract.

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Alexander has been accepted as a freshman at a college two hundred miles from his home for the fall semester. Alexander's wealth
irga5000 [103]

Answer:

Yes.  

Alexander is an intended third party beneficiary of the contract between Michael and Jackson Auto Sales.

Explanation:

In the law of contracts, Alexander becomes a third-party beneficiary of the contract between Michael and Jackson Auto Sales, and he has the right to sue in the contract notwithstanding that he was not an active party to the contract.  Some of the factors that may be present to show that a Alexander is an intended beneficiary are: (1) the contract's performance is rendered directly to Alexander; (2) Alexander has rights to control the details of the performance; or (3) there is an express designation in the contract, e.g. the title to the car is in Alexander's name.

3 0
3 years ago
The entry to accrue a contingent liability reduces equity but not income. is made if it is more likely than not that the liabili
Lorico [155]

Answer:

is made if it is more likely than not that the liability has been incurred.

Explanation:

When contingent liability is recorded it is recorded by debiting income statement and creating a liability in balance sheet, also it is not accounted for until the amount of liability is pretty certain as without being clear about its occurrence and the amount involved the liability cannot be recorded.

There is no such loss account, there exists only income statement.

Therefore, with the above we can conclude that contingent liability is recorded only if:

is made if it is more likely than not that the liability has been incurred.

3 0
3 years ago
Answer please help please
mezya [45]
A computer game that can be purchased online and played right away has good time utility.

This is because going to the store then installing the game on your computer takes time. This time can be saved by simply buying the game online and playing it right away.
7 0
3 years ago
An outside broker locates a seller for a buyer representative's client. In this instance, the outside broker is acting as
zmey [24]

Answer:

He is acting as a sub-agent. The sub-agent, just like the representative of the buyer, is an agent and owes a duty to care and act as an agent for the buyer representive.

4 0
3 years ago
The Stanton Stationery Shoppe wants to acquire The Carlysle Card Gallery for $450,000. Stanton expects the merger to provide inc
ra1l [238]

Question:

The Stanton Stationery Shoppe wants to acquire The Carlysle Card Gallery for $450,000. Stanton expects the merger to provide incremental earnings of about $70,000 a year for 10 years. Carol Stanton has calculated the marginal cost of capital for this investment to be 8%. Conduct a capital budgeting analysis to determine whether she should purchase The Carlysle Card Gallery.

Answer:

Capital Budgeting Analysis is a process of evaluating how we invest in capital assets; i.e. assets that provide cash flow benefits for more than one year.

An organization has to take many decisions regarding the expansion of business and investment. To do that, they will require the help of NPV method and base its decision on the same.

Net present value is used in Capital budgeting to analyze the profitability of a project or investment. It is calculated by taking the difference between the present value of cash inflows and present value of cash outflows over a period of time.

As the name suggests, net present value is nothing but net off of the present value of cash inflows and outflows by discounting the flows at a specified rate.

From the question the following are given:

  1. Capital Expenditure = $450,000
  2. Useful life of expenditure = 10 years
  3. Annual return from expenditure = $70,000
  4. Marginal cost of Capital = 8%

Step 1:                                  

It's formula is given as:

Formula for NPV

NPV = (Cash flows)/( 1+r)i

<em>Where</em>

i- Initial Investment

Cash flows= Cash flows in the time period

r  = Discount rate

i = time period

Computing with a spreadsheet, the Net Present Value of the Investment is given at $ 19,706.

Kindly see attached spreadsheet.

Judgement: Since the NPV is positive the investment is profitable and hence Nice Ltd can go ahead with the expansion.

Cheers!

7 0
3 years ago
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