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

Which of the following is an example of an actual breach of contract by a party?

The contractor who hands over the building on 15 August instead of the agreed 31 July, without any lawful excuse, commits an actual breach. Failing to perform at the time promised is a breach, whereas timely performance or mutual cancellation is not.

  1. AA seller tells the buyer a month early that goods may be delayed but later delivers on time
  2. BA buyer pays the price on the agreed date and takes delivery
  3. CA contractor, due to complete a building on 31 July, completes it and hands it over on 15 August with no excuse recognised by lawCorrect
  4. DA seller and buyer mutually agree to cancel the contract

Explanation

Failure to perform by the date fixed, without lawful excuse, is an actual breach. Option A ends in timely delivery. Option B is proper performance. Option D is discharge by mutual agreement and not a breach.

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