UBE Question of the Day

The Answer is : A.

Choice (A) is the correct answer. As the Restatement (Second) of Contracts section 240 states, “a contract is divisible if it can be apportioned into corresponding pairs of part performance so that the parts of each pair are properly regarded as agreed equivalents.” If a contract is found to be divisible, the court will treat it as a series of separate contracts. Since the electrician is being paid “weekly” for the work he has performed during the course of each week, the contract would be considered divisible and the electrician is entitled to be paid for the second week of work he completed. The builder can also recover any damages he suffered as a foreseeable result of the electrician’s failure to complete the job.

Choice (D) is incorrect because the Statute of Frauds is not applicable to this contract. Choice (C) is irrelevant because even though the conduct was a material breach of the electrician’s future performance, he is still entitled to payment for work done under previous installments. Choice (B) is incorrect because the facts do not indicate that there has been substantial performance.