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A Company (That Installs Heavy Equipment) Is to Be Paid

Question 45

Multiple Choice

A company (that installs heavy equipment) is to be paid upon the completion of each stage in the tooling of a new factory. Yet, it is the factory owner's own chief engineer who does the inspection and makes the approval of each stage. Will the courts enforce this arrangement as a condition precedent?


A) No, since there is an obvious conflict of interest.
B) No, since quantum merit should apply in this situation.
C) Yes, since this is the way things are done in the trade.
D) Yes, because both parties agreed to this arrangement in the contract.
E) No, but any dispute can be settled based on fairness and equity.

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