Skip to content

CMA Foundation · Fundamentals of Business Laws and Business Communication · Breach of Contract and Remedies for Breach of Contract

Anita Enterprises agreed to deliver 1,000 units of a component to Kiran Industries in four equal monthly lots. Anita delivered the first lot, but in the second month delivered nothing and said she would not deliver any more. This is best described as:

It is an actual breach. The second lot fell due and Anita did not deliver it, and she also refused to deliver further lots. Part performance of the first lot does not remove the breach, and the breach is not anticipatory as the due date had already arrived.

  1. AAn actual breach, since performance was due and the promisor refused it, with the failure occurring after part performanceCorrect
  2. BAn anticipatory breach, since delivery of the first lot was already complete
  3. CNo breach, since part performance was made
  4. DA breach only by Kiran Industries for accepting part performance

Explanation

The second lot had become due and was not delivered, so there is an actual breach on the due date, coupled with a refusal for the rest. The earlier delivery of the first lot does not cure the failure. Option B is wrong because the due date for the second lot had already passed.

Did you get it right without looking?

One question tells you little. A timed set on Breach of Contract and Remedies for Breach of Contract shows your real accuracy, how long you take and where you lose marks.

Practise Breach of Contract and Remedies for Breach of ContractFree diagnostic mock

More Breach of Contract and Remedies for Breach of Contract questions