First Principles of Business Law
Performance and breach of contract

4. Establishing a breach of contract

4.6. Late performance

 

 

 

Read the facts and the question and then choose the best answer.

A advertises his house for sale. B agrees to buy it for $500,000, but tells A that he needs two weeks to organises the finances, and that he will pay the price when ownership of the house is transferred to him on June 30th. This is acceptable to A and the contract is signed on these terms. But on June 30th, B telephones A and says there has been an unexpected delay and he will only be able to make payment in two days time. A says this is not good enough. He says late performance is a serious breach of contract and that he is now entitled to stop the sale. Is A correct?

(a) Yes. The agreed time of performance in a contract will be treated as a condition rather than a warranty unless it is clear the parties intended otherwise.

(b) No. The agreed time of performance in a contract will be treated as a warranty rather than a condition unless it is clear the parties intended otherwise.

 

 

 

 

 

 

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