Question $10$

$4$ pts

$10.$ Hanger Enterprises agreed to build an airplane hanger for City Airport Authority at a cost of $$300,000$ to be paid in $3$ installments. After the first $2$ installments were paid and work on the hanger had begun City Airport Authority advised Hanger Enterprises that it had lost a source of funding and would not be making the final payment. Hanger Enterprises ceased work on the airplane hanger and sued City for breach of contract. What is the term used to describe this situation and what judgment would the Court make?

A$.$ This is an Anticipatory Breach$/$Repudiation since City is telling Hanger in advance that it intends to breach the contract. The Court would order City to pay Hanger the final $$100,000$ less what it would reasonably cost City to finish the work on the airplane hanger.

B$.$ This is an Anticipatory Revelation by City for revealing its intent to breach the contract before actually breaching the contract. The Court would award actual damages of $$100,000$ to Hanger plus an award of punitive damages to punish City for its actions.

C$.$ This is Antenuptial Breach for which both parties are at fault and neither party is entitled to recover anything from the other party.

D$.$ This is an Anticipatory Breach$/$Reputiation$.$ The Court should dismiss the lawsuit because it is barred by the Statute of Frauds.