Breach of Contract

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  • Topic: Contract, Breach of contract, Money
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  • Published : September 5, 2011
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Breach of Contract
BUS311: Business Law
Instructor Katheryne Rogers
3/18/2011

Breach of Contract
Breach of contract can happen by a party intentionally breaching the contract or because of unexpected delays. In this paper I will discuss the contract my brother had with an in home appliance sales company.

My brother and his wife purchased all of their appliances for their new home from an appliance company. The written agreement was that payment for the appliances was to be made upon delivery of all appliances that were purchased. On the date of delivery, the delivery men had explained that the over the stove microwave would not be delivered until the following week. When the delivery men were finished unloading the appliances that did come, they asked my brother for payment of the delivered products. My brother refused to pay the delivery men for the appliances and said he would pay as soon as the rest was delivered. The delivery men tried to argue that they needed payment for the stove, refrigerator, dishwasher, washer and dryer before they could leave. My brother showed them the written agreement between himself and the appliance company, the delivery men accepted that and took his signature for the delivered appliances and left.

Breach of contract is defined as “when a party to a contract refuses to perform as required by the contract or performs in an unsatisfactory manner (Liuzzo & Bonnice 2010, p. 500)”. Applying this definition to my example, I would say that the appliance company unsatisfactorily performed the contract and caused a breach. Had all the appliances been delivered on the same day, payment would have been made and the contract would have met substantial performance requirements. But, since one appliance was missing, the contract for payment at delivery is void. Payment can be made when the last appliance is delivered.

The appliance company made a phone call to my brother upon delivery of the unpaid, signed, delivery...
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