Fact Pattern 14-2
Medical Accounts Collection enters into a contract to employ Natalie as a billing and credit manager for two years. During the first year, Natalie is often absent without explanation and when present fails to adequately do her job.
-Refer to Fact Pattern 14-2. Natalie's performance most likely
A) discharges Medical Accounts from the contract.
B) has no effect on Medical Accounts's performance.
C) undercuts Medical Accounts's duties under the contract.
D) suspends Medical Accounts's duty to perform.

Question

Fact Pattern 14-2 
Medical Accounts Collection enters into a contract to employ Natalie as a billing and credit manager for two years. During the first year, Natalie is often absent without explanation and when present fails to adequately do her job.
-Refer to Fact Pattern 14-2. Natalie's performance most likely
A) discharges Medical Accounts from the contract.
B) has no effect on Medical Accounts's performance.
C) undercuts Medical Accounts's duties under the contract.
D) suspends Medical Accounts's duty to perform.

Quizplus · Accepted Answer

Natalie's failure to adequately perform her job and her frequent unexplained absences constitute a breach of her employment contract. As a result, Medical Accounts may discharge Natalie and terminate the contract due to her non-performance. However, Medical Accounts must follow any contractual or legal procedures for termination, such as providing notice and a chance to cure the performance issues, if required by the contract. Additionally, Medical Accounts may be entitled to sue Natalie for any damages incurred as a result of her breach of contract.