Fact Pattern
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1.One month before the term begins,Bell is underbid by a competitor and loses a major client,Delta Hospital Center.Bell now refuses to hire Chris.
-Refer to Fact Pattern 10-B2.Bell's repudiation is most likely
A)a material breach.
B)a minor breach.
C)Chris's breach.
D)no breach.

Question

Fact Pattern 
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1.One month before the term begins,Bell is underbid by a competitor and loses a major client,Delta Hospital Center.Bell now refuses to hire Chris.
-Refer to Fact Pattern 10-B2.Bell's repudiation is most likely
A)a material breach.
B)a minor breach.
C)Chris's breach.
D)no breach.

Quizplus · Accepted Answer

Bell's refusal to hire Chris one month before the term begins constitutes a material breach of their contract. By repudiating the contract, Bell is indicating that they are unable or unwilling to perform their obligations under the agreement. This type of breach goes to the heart of the contract and excuses the non-breaching party, Chris, from his obligations under the contract.

Fact Pattern Bell Medical Education Service Enters into a Contract to Employ