Eric is the project manager of the NQQ Project and has hired the ZAS Corporation to complete part of the project work for Eric's organization.
Due to a change request the ZAS Corporation is no longer needed on the project even though they have completed nearly all of the project work.
Is Eric's organization liable to pay the ZAS Corporation for the work they have completed so far on the project?
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A. B. C. D.C.
The correct answer is C. It depends on what the termination clause of the contract stipulates.
Explanation:
In this scenario, Eric's organization has hired ZAS Corporation to complete part of the project work. Due to a change request, Eric's organization no longer needs the services of ZAS Corporation, even though they have completed nearly all of the project work.
The question is whether Eric's organization is liable to pay ZAS Corporation for the work they have completed so far on the project. The answer depends on the termination clause of the contract between Eric's organization and ZAS Corporation.
The termination clause specifies the conditions under which the contract can be terminated by either party, and what happens when the contract is terminated. The termination clause may include provisions for payment of work done before termination, such as a termination fee or payment for completed work.
If the termination clause specifies that ZAS Corporation is entitled to payment for completed work, then Eric's organization is liable to pay them for the work they have completed so far on the project. If the termination clause does not specify payment for completed work, then Eric's organization may not be liable to pay ZAS Corporation.
Therefore, the correct answer is C. It depends on what the termination clause of the contract stipulates.