'A' and 'B' contract that 'A' shall build a house for 'B' at a fixed price. The order in which reciprocal promises are to be performed was not fixed. What shall be the order of performance?
Verified Answer
A. A's promise to build the house must be performed before B's promise to pay for the house.
B. B's promise to pay for the house must be performed before A's promise to build the house.
C. A & B should perform their promise simultaneously.
D. None of the above.
Explanation:
This is an example of reciprocal promises that are dependent. Generally, the work (building the house) must be completed or substantially performed before payment is due, unless otherwise agreed. This is implied by the nature of the contract.