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In Axelson V

Question 85

Multiple Choice

In Axelson v.McEvoy-Willis,McEvoy hired Axelson to build special equipment for oil rigs,after forms went back and forth,Axelson built equipment for McEvoy,which suddenly cancelled the contract.Axelson sued for damages;McEvoy noted the contract stated it could cancel at any time.The appeals court held that:


A) since the conduct of both parties recognized the existence of a contract before the insertion of the term that McEvoy had the right to cancel the order at any time,McEvoy was liable for breach of contract
B) if the conduct of both parties had recognized the existence of a contract before the insertion of the term that McEvoy had the right to cancel the order at any time,McEvoy would have been liable for breach of contract,but this was not the case
C) the contract was unfair to Axelson,so McEvoy was liable
D) McEvoy was liable for punitive damages
E) McEvoy was not liable for any damages

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