What is a contract for a piece of work?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 1:
What is a contract for a piece of work?
Question 2:
What are the obligations of the Contractor?
Answers:
1 ______________________________ __________________________________________ (Art. ____ )
2 ______________________________ __________________________________________ (Art. ____ )
3 ______________________________ __________________________________________ (Art. ____ )
Question 3:
What are the rights of the Contractor?
Answers:
1 ______________________________ __________________________________________ (Art. ____ )
2 ______________________________ __________________________________________ (Art. ____ )
Question 4:
What are the liabilities of the Contractor?
Answers:
1 ______________________________ __________________________________________ (Art. ____ )
2 ______________________________ __________________________________________ (Art. ____ )
3 ______________________________ __________________________________________ (Art. ____ )
4 ______________________________ __________________________________________ (Art. ____ )
Question 5:
An engineer agrees to construct a residential house under the lump-sum contract of P2,000,000.00. 
While the building is nearing completion, it is destroyed by fire of unknown origin. Who suffers the loss?
Question 6:
Engr. A undertook to construct for Dr. B a five-door apartment. For a consideration of P1,000,000.00, 
Engr. A agreed to furnish both labor and materials. After Dr. B paid the contract price and after he 
accepted the apartment, Hardware C approached Dr. B and demanded payment of P50,000.00 
representing the unpaid materials of Engr. A. Will such action of Hardware C, prosper? Why?

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