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 not completing the job and therefore cannot demand full payment from Mark. However, Mark may still owe Jim for the materials used, but this would need to be proven and calculated separately from the contracted amount. The concept of substantial performance is not applicable in this scenario as Jim did not complete the job. Option A is not correct. Option B is incorrect as Jim cannot demand any amount in excess of what was agreed upon in the contract. Option D is incorrect as Jim did not complete the job. Option E is incorrect as the agreed upon price was $500,000 and it is not unreasonable.

A Homebuilder,Jim,accepts an Entire Contract from Mark to Build a House