Paralegal Certification PrepContracts and Business LawEasy
A paralegal is assisting an attorney with a dispute involving a construction contract. The contract specified that 'time is of the essence' for the completion of the project by October 1st. Due to unforeseen material shortages, the contractor notifies the client on September 20th that the project will be delayed by at least two months. Which of the following best describes the contractor's action?
- ABreach of contract
- BAccord and satisfaction
- CMutual rescission
- DSubstantial performance
Show answer & explanationAnswer & explanation
Correct answer: A. Breach of contract
When a party fails to perform a material term of a contract, especially one designated as 'time is of the essence,' it constitutes a breach of contract. The contractor's failure to meet the deadline is a direct violation of a material term.
Why the other options are wrong
- B. Accord and satisfaction is an agreement to accept different performance than originally contracted, which hasn't occurred here.
- C. Mutual rescission is when both parties agree to terminate the contract, which is not what the contractor did unilaterally.
- D. Substantial performance applies when performance is nearly complete and only minor deviations exist, which is not the case here.
Breach of Contract
A breach of contract occurs when one party fails to fulfill their obligations as specified in a legally binding agreement.
- Can be minor or material.
- Material breach often excuses the non-breaching party from further performance.
- Remedies include damages, specific performance, or rescission.
Memory trick: Contracts are like promises, a 'breach' is when a promise is broken.