If a party has completely failed to perform contractual obligations within the time specified:
A) the nonbreaching party is not required to pay under any circumstances.
B) the nonbreaching party may be required to pay for the work that has already been completed.
C) the contract is terminated.
D) the contract may be terminated only under certain conditions.

Question

Quizplus · Accepted Answer

If a party has completely failed to perform contractual obligations within the time specified, the contract is considered breached and terminated, freeing both parties from further obligations. However, the nonbreaching party may still have a claim for damages resulting from the breach. Option A is not correct because if the nonbreaching party has already received benefits from the contract, they may be required to pay for the work done. Option B is not entirely accurate as it depends on the contract terms and the severity of the breach. Option D is too vague as it does not specify the conditions under which the contract may be terminated.

If a Party Has Completely Failed to Perform Contractual Obligations