The larger firm, providing equipment and bonding capacity, of a Joint Venture wh

Question

The larger firm, providing equipment and bonding capacity, of a Joint Venture which signed a construction contract files Bankruptcy in the middle of the project.

The contract is voidable by the Owner because the other party is no longer competent

The contract converts to a contract between the Owner and the remaining member and future payments are made to that member.

The Owner must wait and see if the remaining member of the Joint Venture fulfills the requirements of the contract.

The contract is void because the party is no longer competent.

The contract is voidable by the Owner because the other party is no longer competent

The contract converts to a contract between the Owner and the remaining member and future payments are made to that member.

The Owner must wait and see if the remaining member of the Joint Venture fulfills the requirements of the contract.

The contract is void because the party is no longer competent.

Explanation / Answer

Option a is correct. The contrac can be voidable by the owner because other contrator in Joint venture is nolonger available. Owner offers the project to the joint venture by looking all requirements in all the members of joint venture. If one left the contract, then owner has a right to void the contract.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.