Easily Replace Alternative Choice from the Performance Contract

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How to Replace Alternative Choice from the Performance Contract

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this video will walk you through incremental analysis for replacing or retaining equipment in a decision to retain or replace equipment mancell compares the cost which are affected by the two alternatives generally the relevant items to be considered are the variable manufacturing cost and the cost of new equipment the book value of the machine old machine is a sunk cost which does not reflect the decision remember a sunk cost is a cost that cannot be changed by present or future decisions so just a quick reminder of what is Book value we talk about Book value thats simply the cost of the equipment less its accumulated appreciation so any book value means that we have not depreciated the piece of equipment totally yet and when if you just eliminate that piece of equipment and dont get any trade-in value that book value becomes a loss on the income statement so instead of depreciating it and we impact our income statement itll be a loss both have the same impact on the income stateme

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What is alternative to performance of contract?

Alternative performance, also known as alternative contract or alternative-methods-of-performance contract, is one in which the performing party may choose to perform one of two or more specified acts to satisfy the contractual obligation.

What are the three types of performance contracts?

Performance of a contract relieves a person from further duties under the contract. There are three levels of performance: Complete Performance, Substantial Performance, and BdocHub.

How do you enforce specific performance?

To have a specific performance clause invoked, an injured party must prove that the contract is valid, that they have lived up to the terms of the contract, that the defendant could have done the same but did not do so, and that a monetary award is not sufficient.

What is a substituted performance?

Section 20 of the Specific Relief Act, 1963 states that where the contract is broken due to non-performance of promise by any party, the party who suffers by such bdocHub shall have the option of substituted with performance through a third party or by his own agency, and, recover the expenses and other costs actually

What is substituted contract in contract law?

A substituted contract is an agreement between parties that were involved in a previous contract. The substituted contract replaces the original contract, completely taking its place and discharging the terms of the original agreement.

What are the two types of performance contract?

Performance of a contract is one of the methods of discharge of a contract. The performance may be of two types: (a) actual performance and (b) attempted performance. An actual performance of a contract means performing all the promises and fulfilling all the liabilities by all the parties.

What is substituted performance in law?

Substituted performance of contracts means , where a contract is broken, the party who suffers would be entitled to get the contract performed by a third party or by his own agency and to recover expenses and costs, including compensation from the party who failed to perform his part of contract.

What is a claim for specific performance?

Specific performance is a specialized remedy used by courts when no other remedy (such as money) will adequately compensate the other party. If a legal remedy will put the injured party in the position he or she would have enjoyed had the contract been fully performed, then the court will use that option instead.

What are the 3 types of performance of a contract?

Three types of performance could occur in your contract: actual, substantial, and perfect. Actual Performance: An actual performance is one where both parties have fulfilled their obligations as set out in the contract.

What is the action for substituted performance?

Substituted performance means the obligation will be performed by a third party at the expense of the defaulting party. In addition, for reciprocal obligations, the non-defaulting party can seek the rescission (or resolution) of the contract including damages.

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