Fact Pattern 22-1
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 22-1.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 22-1
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 22-1.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

OPI may be entitled to recover damages from Nelson for breaching the contract and causing them to incur penalties from Prime Bank. Specific performance and injunctions usually are not granted in cases involving contracts for personal services, such as accounting services.

Fact Pattern 22-1 Nelson, an Accountant, Enters into a Contract to Provide Services