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.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

Quizplus · Accepted Answer

Business Computer Solutions entered into a binding contract with Chandra to employ her as an instructor for two years, beginning June 1. However, before the term began, Business Computer lost a major client and refused to hire Chandra. This action constitutes a material breach of the contract since Business Computer did not fulfill its obligation to provide employment to Chandra as per the agreed terms.

Business Computer Solutions Education Service Enters into a Contract to Employ