ch. 24 - breach of contract

Question 1

what are the three types of breach?

Answer 1

• partial breach
• material breach
• total breach

Question 2

partial breach

Answer 2

minor deviations where the breaching party has substantially performed

Question 3

material breach

Answer 3

when a party has not substantially performed

Question 4

total breach

Answer 4

when the party has materially breached and is unwilling or unable to perform

Question 5

obligor

Answer 5

the party who owes a contractual or other legal obligation to another

Question 6

obligee

Answer 6

the party to whom a contractual or legal obligation is owed

Question 7

is there a right to terminate when a partial breach occurs?

Answer 7

• no right to terminate, however may recover money damages

Question 8

right to terminate when material breach occurs?

Answer 8

• non-breaching party may terminate UNLESS it seems like the breaching party will cure its breach
• if breaching party is given chance to cure then other party may suspend performance
• if the material breach remains uncured then it becomes a total breach and other party may terminate the K and withhold performance

Question 9

implications of time is of the essence clause

Answer 9

• party will be in total breach if performance does not occur by a certain date at a certain time
• negates the right to cure

Question 10

factors to determine breach

Answer 10

1. amount of benefit not received
2. adequacy of damages
3. forfeiture suffered by breaching party
4. likelihood of cure
5. lack of good faith and fair dealing

Question 11

UCC 4 types of nonperformance

Answer 11

1. nondelivery
2. failure to make perfect tender
3. breach of warranty
4. anticipatory repudiation

Question 12

UCC if the seller fails to deliver a perfect tender what may the buyer do?

Answer 12

• reject the whole
• accept the whole
• accept any commercial unit(s) and reject the rest