If Paul breaches the contract by not installing the plumbing, what can Cheryl do?

Prepare for the BPA Business Law and Ethics Test with engaging flashcards and multiple choice questions. Each question comes with explanations to enhance understanding. Succeed in your exam confidently!

In the scenario where Paul breaches the contract by failing to install the plumbing, Cheryl has the right to sue Paul for breach of contract. A breach of contract occurs when one party does not fulfill their obligations as outlined in the agreement. The law typically provides the non-breaching party with the option to seek legal remedies, which can include monetary damages or specific performance, among others.

When Cheryl considers her options, pursuing legal action is a mechanism intended to enforce the terms of the contract and hold the breaching party accountable. It allows Cheryl to seek compensation for any losses she has incurred as a result of Paul's failure to perform his contractual duties.

The other options presented appear less viable. If Cheryl chooses to take no action, she may lose her right to enforce the contract. A verbal agreement can still be binding, depending on the circumstances, so assuming no action can be taken solely based on the lack of written documentation would be misleading. Renegotiating the contract might not be possible or would not necessarily resolve the breach already committed. Each of these alternatives offers less legal recourse than directly addressing the breach through litigation.

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