Breach

Question 1

Major/minor

Answer 1

Failure to perform in accordance with the contract’s terms is a breach. A breach is minor if one party substantially performs on the contract and the non-breaching party gains a substantial benefit of the bargain despite the defective performance. If a breach is minor, the non-breaching party is not relieved if his duty to perform but is entitled to damages. If the breach is major, the non-breaching party is excused from performance.

Question 2

UCC - Perfect Tender

Answer 2

The buyer of goods is NOT required to pay the seller unless the seller makes a perfect tender of goods. If less than perfect, the buyer can 1) retain goods and sue for damages, 2) reject all or any commercial unit and sue for damages. However, in an installment contract the seller must have an opportunity to cure if the seller has reasonable grounds to believe the improper tender would be acceptable.

Question 3

UCC - Perfect Tender

Answer 3

Payment is acceptance, but if without an opportunity to inspect it is not acceptance. Keeping goods without objectin (roughly 2 weeks) is an implied acceptance. Once goods are accepted, they cannot be later rejected.

Question 4

Express condition

Answer 4

Express conditions make an obligation to perform contingent on the occurrence of some specific event. Strict compliance is reuired to satisfy an express condition and failure to satisfy a condition will be considered a material breach and excuse the non-breaching party from performance.

Question 5

IMplied Condition

Answer 5

Most courts will imple a condition of good faith and fair dealing in every contract. This if a party acts in bad faith, it will release any obligation of performance by the other party.

Question 6

Constructive condition by substantial performance

Answer 6

The condition of complete performance may be excused if the party has rendered subsantial performance. Substantial performance arises if the breach was only minor. A breach is minor if the obligee gains the substantial benefit of the bargain despite the obligor’s defective performance.

Question 7

Excuse of condition - Hindrance

Answer 7

The condition of complete performance may be excuse if the party intentionally hinders the completion of performance.