Explain whether the penalty given by a contractor for late completion can be classified as liquidated damage or as penalty. Explain whether the contractor expects to gain any assessment from court action if the owner includes a bonus of $500 per day for early completion.

Question

Want to see the full answer?

Answer 1

Question

Chapter 3, Problem 4RQE

To determine

Explain whether the penalty given by a contractor for late completion can be classified as liquidated damage or as penalty.

Explain whether the contractor expects to gain any assessment from court action if the owner includes a bonus of $500 per day for early completion.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

For having been loyal, trustworthy, and efficient, the company has offered a superior yearly gratuity pay of P20,000 for 10 years with the first payment to be made one year after his retirement. The supervisor, instead, requested that he be paid a lump sum, on the date of his retirement, having less interest that the company would have earned if the gratuity is to be paid in yearly basis. If interest is 15%, what is the equivalent lump sum that he could get?

A factory operator bought a diesel generator set of 10,000 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the dept for principal and interest. What is the annual payment?

Q2/A pre-cast concrete factory was purchased with a value of (1,500,000 $) paid as an advance, and the rest of the amount will be paid in the form of annual installments for five years, the value of each installment (17,000 $) If you know that the interest rate is (8%), find the purchase price for the factory.