Breach

Question 1

Breach generally requires: 2

Answer 1

Promisor is under an absolute duty to perform, and

Absolute duty has not been discharged

Question 2

Material breach occurs if ______.

Some factors determining materiality are: (give at least two)

Answer 2

The obligee doesn’t receive the substantial benefit of their bargain.

Amount of benefit received by nonbreaching party
Adequacy or compensation for damages
Extent of part performance
Hardship to breaching party
Negligence or willfulness of breaching party

Question 3

Is timeliness of performance generally material?

Answer 3

No, unless contract says something like “time is of the essence” or is an essential part of the contract

Question 4

Perfect tender rule: buyer may do any of the following if goods do not conform:

Answer 4

Reject entire shipment,
Accept entire shipment, or
Reject in part and accept in part

Note: One who accepts goods may be able to recover difference between what was expected and what was delivered

Question 5

Buyer accepts goods if they: (at least 3)

Answer 5

Indicate goods conform to contract,
Indicate they’ll keep nonconforming goods,
Fail to reject in reasonable time,
Fail to notify seller of rejection,
Act inconsistent with seller’s ownership

Question 6

Seller has the right to cure nonconforming goods as long as they:

Answer 6

Give reasonable notice to buyer of intention to cure