Crucial Exams

Multistate Bar Examination Practice Question

A contractor was hired to build a warehouse for a business. Partway through the project, the business wrongfully terminated the contract, despite the contractor having already purchased materials specifically for the warehouse. Under contract law, what is the contractor required to do regarding the materials?

  • Retain the materials and sue the business for the full purchase price.

  • Send a demand letter requiring the business to repurchase the materials at their original cost.

  • Resell or repurpose the materials, if feasible, to reduce financial losses.

  • Dispose of the materials since the contract was terminated.

Multistate Bar Examination
Contracts
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