Home Built LLC enters into a contract with Irene to build a house. Before Home starts to work, the market price for its services increases-in effect, Home will lose money by if it fulfills its contract with Irene. Home notifies her that it will not perform. Home's obligation to perform is
A) breached.
B) discharged.
C) rescinded.
D) suspended.

Question

Home Built LLC enters into a contract with Irene to build a house. Before Home starts to work, the market price for its services increases-in effect, Home will lose money by if it fulfills its contract with Irene. Home notifies her that it will not perform. Home's obligation to perform is​
A) ​breached.
B) ​discharged.
C) ​rescinded.
D) ​suspended.

Quizplus · Accepted Answer

Home Built LLC's obligation to perform is breached because they have unilaterally decided not to fulfill their contractual obligations due to a change in market conditions, which does not legally excuse them from performing.

Home Built LLC Enters into a Contract with Irene to Build