Contractors Service, Inc., enters into a contract to build a restaurant for Dierdre's Soup Spoons Bistro with Dierdre's payment due on August 1. On August 1, her bank is closed, and for this reason, she claims that she cannot pay on time. In this situation
A) Dierdre's bank is liable to Contractors Service.
B) Dierdre is in breach of contract.
C) the contract is discharged.
D) the contract is suspended.

Question

Contractors Service, Inc., enters into a contract to build a restaurant for Dierdre's Soup Spoons Bistro with Dierdre's payment due on August 1. On August 1, her bank is closed, and for this reason, she claims that she cannot pay on time. In this situation
A) ​Dierdre's bank is liable to Contractors Service.
B) ​Dierdre is in breach of contract.
C) ​the contract is discharged.
D) ​the contract is suspended.

Quizplus · Accepted Answer

Dierdre is in breach of contract for failing to make payment on the due date. The fact that her bank was closed is not a valid excuse unless it was due to some unexpected event or natural disaster. The contract is not discharged or suspended unless the parties agree to modify it or terminate it. Dierdre's bank is not liable unless they committed some form of negligence or misconduct that caused the payment issue.