A party to a contract erroneously acted on an assumption involving breach of an innominate term.That party is itself now being sued for breach.What was the erroneous action taken by this party?
A) the initiation of a claim for damages
B) the repudiation of the contract
C) an incorrect application of a warranty
D) a delay of performance of obligations

Question

Quizplus · Accepted Answer

Repudiating a contract based on an erroneous assumption of a breach of an innominate term can lead to the repudiating party being sued for wrongful termination of the contract. Innominate terms are not classified strictly as conditions or warranties, and whether their breach justifies termination depends on the severity of the breach's impact on the contract's value to the innocent party.

A Party to a Contract Erroneously Acted on an Assumption