Asked by Mariela Arches on Jul 14, 2024
Verified
Q Media Inc. contracts with Rural Broadband LLC to design and build an all-weather communications system for Q's operations. Rural builds the system, but it repeatedly, predictably fails in bad weather conditions. Is this a breach of the contract? If so, what remedies does Q have?
All-Weather
Designed to operate or remain usable in all types of weather conditions.
Communications System
The assembly of hardware, software, and protocols that enable the transmission of data, voice, and video between entities.
Breach
The act of breaking or failing to observe a law, agreement, or code of conduct.
- Determine the conditions that can lead to a contract being deemed breached or terminated.
- Assess the entitlement to compensation within a contract in the context of incompletely met duties.
Verified Answer
CC
Claudia CastleberryJul 19, 2024
Final Answer :
Performance far below reasonable expectations is not substantial. When performance is not substantial, a breach is material. The non-breaching party is excused from performing and can sue for damages caused by the breach. Any breach entitles the non-breaching party to sue for damages, but only a material breach discharges the non-breaching party from the contract.
In this question, the contract asked for an all-weather communications system, but the system functioned effectively only in good weather. Thus, Q is excused from paying for the system and can sue for damages caused by the breach.
In this question, the contract asked for an all-weather communications system, but the system functioned effectively only in good weather. Thus, Q is excused from paying for the system and can sue for damages caused by the breach.
Learning Objectives
- Determine the conditions that can lead to a contract being deemed breached or terminated.
- Assess the entitlement to compensation within a contract in the context of incompletely met duties.