In relation to contract types, what is the effect on remedies for breaches when dealing with SCS contracts compared to open contracts?

• A. SCS contracts allow more remedies than open contracts
• B. SCS contracts may preserve remedies for outstanding obligations after completion, whereas open contracts may limit remedies if terms remain unsatisfied
• C. Open contracts reset remedies to zero after completion
• D. There is no difference between SCS and open contracts

Answer: (B)

Remedies after completion depend on whether the contract keeps certain obligations alive once ownership passes. In SCS contracts, the agreement can preserve rights to enforce outstanding duties even after completion, so a breach that leaves obligations unmet at completion can still be pursued. In open contracts, once completion occurs the contract is largely treated as satisfied, and remedies for terms not fully met at that point are more restricted or discharged. So the best choice is that SCS contracts may preserve remedies for outstanding obligations after completion, whereas open contracts may limit remedies if terms remain unsatisfied.