Breach Flashcards
Failure of Condition
ailure of condition occurs when one party fails to perform his condition, resulting in a breach of contract. The non-breaching party’s own duty of performance is discharged. This means the contract is still in effect and the breaching party still has a duty to perform. If he does not, contract remedies may be imposed.
Breach of Contract
A breach of contract occurs when one party to a contract fails to perform pursuant to the terms of the contract.
Material Breach
A breach is material if it is so substantial that it defeats the purpose of the parties in making the contract or if it is so significant as to destroy the value of the contract. Whether a breach is material is a question of fact. If a breach is material, the plaintiff is justified in treating the entire transaction as ended and may thereafter sue for damages.
Minor Breach
If a breach is minor in nature the plaintiff has a cause of action for damages caused by the breach, but the contract remains in effect.
Breach by Tendering Non-Conforming Goods
Under the UCC, a delivery of non-conforming goods is a breach unless the goods are accompanied by a notification that the goods are being offered as an accommodation, in which case the tender is a counter offer.
If non-conforming goods are delivered as part of an installment contract, the buyer may reject the shipment, but the rest of the contract (additional installments) remains in effect. However, if the non-conformity substantially impairs the value of the whole contract, then the whole contract is breached.
Cure
Under the UCC, if non-conforming goods are tendered and rejected, the seller may notify the buyer that he intends to rectify the problem as long as the time for performance has not passed.