Fact Pattern
Mutual Company enters into a contract to employ Neil as an investment manager for two years.During the first year,Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments.
-Refer to Fact Pattern 10-A1.Neil's performance is most likely
A)a material breach.
B)a minor breach.
C)Mutual's breach.
D)no breach.

Question

Fact Pattern 
Mutual Company enters into a contract to employ Neil as an investment manager for two years.During the first year,Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments.
-Refer to Fact Pattern 10-A1.Neil's performance is most likely
A)a material breach.
B)a minor breach.
C)Mutual's breach.
D)no breach.

Quizplus · Accepted Answer

Neil's frequent absences and failure to adequately manage Mutual's investments likely constitute a material breach of his employment contract. Material breaches are significant and go to the heart of the contract, making it difficult or impossible for the non-breaching party to receive the full benefit of their bargain. Neil's poor performance may have caused Mutual to suffer financial losses or missed opportunities that could have been prevented with adequate management. As such, it is likely that his breaches are material and would entitle Mutual to terminate the contract and possibly pursue damages.

Fact Pattern Mutual Company Enters into a Contract to Employ Neil as Employ