Standard Construction, Inc. (SCI), contracts to build a store for Tasty Confection Company (TCC), with TCC's payment due on June 1. On June 1, TCC's bank is closed, and for this reason, TCC claims it cannot pay SCI on time. In this situation
A) SCI is in breach of contract.
B) TCC is in breach of contract.
C) the contract is discharged.
D) the contract is suspended.

Question

Quizplus · Accepted Answer

TCC is in breach of contract for failing to make payment on the agreed-upon date. The fact that their bank is closed is not a valid excuse for non-payment. However, SCI may need to provide TCC with a reasonable amount of time to make the payment before pursuing legal action.