A homebuilder, Jim, accepts an entire contract from Mark to build a house for $500 000 on his property.Half way through the job, the builder's material and money run out and Jim is unable to finish the job.He chooses to leave the worksite indefinitely.A year later, Jim returns to find the house on Mark's property fully completed.Jim then asks Mark to pay for the work that he completed before leaving the worksite.Mark refuses to pay.Which of the following is true?

Question

Quizplus · Accepted Answer

Jim breached the contract by leaving the worksite without completing the job, so he is not entitled to the full contract price of $500 000. However, Mark may still owe Jim for the materials used on the project, assuming they were not paid for previously. The doctrine of substantial performance does not apply here since the job was not completed, and therefore Mark does not owe Jim any part of the contract price. Option A is incorrect as there was no substantial performance. Option B is incorrect as Mark does not have discretion to pay any amount he wants, as there was a contract in place. Option D is also incorrect as Jim did not complete the job. Option E is incorrect as $500 000 was the agreed-upon contract price, but Jim is not entitled to it because he breached the contract.

A Homebuilder, Jim, Accepts an Entire Contract from Mark to Build