What are the limits on the City's payment obligations to the Contractor?

The correct choice is focused on the fact that the City's payment obligations to the Contractor are specifically defined and limited to certain compensations outlined in the agreement. This means that the Contractor can expect payments only for the services rendered as stated in their contract, which helps to set clear financial expectations and protects the City from unauthorized or excessive financial commitments.

Establishing clear limits in the contractual language is crucial for budgetary control and accountability. It ensures that the Contractor understands the financial framework within which they are operating and prevents any misunderstandings regarding payment expectations.

Other options suggest scenarios that either leave room for ambiguity about payments or imply a lack of a financial obligation, which do not align with standard contract provisions that primarily exist to ensure transparency and security in fiscal responsibilities.