Fact Pattern 47-1
Nelson, an accountant, enters into a contract to provide services to Operational Processes, Inc. (OPI). Nelson does not finish the work within the contract's deadline. This causes OPI to fail to meet certain other deadlines owed to Prime Bank, which results in the firm's payment of penalties to the bank.
-Refer to Fact Pattern 47-1. OPI may be entitled to
A) payment from Nelson of the amount of the penalties in damages.
B) specific performance of any future contract with Nelson.
C) an injunction against future breaches of contract by Nelson.
D) no damages or other relief because Nelson is not liable.

Question

Fact Pattern 47-1​
Nelson, an accountant, enters into a contract to provide services to Operational Processes, Inc. (OPI). Nelson does not finish the work within the contract's deadline. This causes OPI to fail to meet certain other deadlines owed to Prime Bank, which results in the firm's payment of penalties to the bank.
-Refer to Fact Pattern 47-1. OPI may be entitled to​
A) ​payment from Nelson of the amount of the penalties in damages.
B) ​specific performance of any future contract with Nelson.
C) ​an injunction against future breaches of contract by Nelson.
D) ​no damages or other relief because Nelson is not liable.

Quizplus · Accepted Answer

Nelson breached the contract by not finishing the work within the contract's deadline, which caused OPI to incur penalties from Prime Bank. OPI may be entitled to recover the amount of the penalties as damages from Nelson for the breach of contract. Option B and C are not relevant in this case as they relate to future contracts, and OPI has already suffered the damages. Option D is incorrect as Nelson is liable for the breach of the contract.

Fact Pattern 47-1​ Nelson, an Accountant, Enters into a Contract to Provide Services

Fact Pattern 47-1 Nelson, an Accountant, Enters into a Contract to Provide Services