Fact Pattern 14-3
Business Computer Solutions Education Service enters into a contract to employ Chandra as an instructor for two years to begin June 1. One month before the term begins, Business Computer is underbid by a competitor and loses a major client, Debt Consolidation Corporation. Business Computer now refuses to hire Chandra.
-Refer to Fact Pattern 14-3. Business Computer's repudiation of its contract to employ Chandra is most likely
A) a material breach.
B) a minor breach.
C) a condition subsequent.
D) not a breach.

Question

Fact Pattern 14-3 
Business Computer Solutions Education Service enters into a contract to employ Chandra as an instructor for two years to begin June 1. One month before the term begins, Business Computer is underbid by a competitor and loses a major client, Debt Consolidation Corporation. Business Computer now refuses to hire Chandra.
-Refer to Fact Pattern 14-3. Business Computer's repudiation of its contract to employ Chandra is most likely
A) a material breach.
B) a minor breach.
C) a condition subsequent.
D) not a breach.

Quizplus · Accepted Answer

By refusing to hire Chandra one month before the contract term begins, Business Computer Solutions Education Service is committing a material breach of the contract. This is because they are not fulfilling one of the essential terms of the contract, which is to employ Chandra as an instructor for two years starting on June 1. The loss of a major client and being underbid by a competitor does not excuse their performance under the contract.