Breach of Contract

Good Essays
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



References: Liuzzo, A. Bonnice, J. (2010) Essentials of business law 6th ed. Boston: McGraw-Hill

You May Also Find These Documents Helpful

  • Good Essays

    Wally owns Windy City Watches in Chicago, Illinois. He needs to buy knockoff Rolexes from a wholesaler, Randy, in Milwaukee, Wisconsin. Wally and Randy discuss terms via telephone and agree Wally will purchase 100 watches for $25.00 a piece for a total of $2,500. Randy agrees to send an order form for the purchase and ship when the signed form is returned from Wally. Wally signed and returned the order form agreeing to purchase the goods. A week later Wally receives 50 watches accompanied by a note explain the remaining 50 watches will arrive in a few days. Also enclosed was the bill for entire order totaling $2,500. By this time, Wally has decided he does not want to purchase the fake Rolexes. He contacts Randy explain the situation wanting to return the watches and reimburse Randy for shipping costs. Randy in turn sues to enforce the original contract.…

    • 631 Words
    • 2 Pages
    Good Essays
  • Better Essays

    A breach of contract occurs when a party’s duty to perform under a contract is absolute, and that party fails to perform. The duty can be absolute because it was not conditional in the first place; any conditions were either excused or fulfilled; or the duty was not discharged.…

    • 955 Words
    • 3 Pages
    Better Essays
  • Satisfactory Essays

    1. Grand Fabricating Co. and Good Corp. agreed orally that Good would custom manufacture a compressor for Grand at a price of $120,000. After Good completed the work at a cost of $90,000, Grand notified Good that the compressor was no longer needed. Good is holding the compressor and has requested payment from Grand. Good has been unable to resell the compressor for any price. Good incurred storage fees of $2,000. If Grand refuses to pay Good and Good sues Grand, the most Good will be entitled to recover is…

    • 194 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Chapter 11 Business law

    • 475 Words
    • 2 Pages

    Signal Sets Company contracts to deliver one hundred 52-inch plasma high-definition television sets to a new retail customer, Tuner TV Store, on May 1, with payment to be made on delivery. Signal tenders delivery in its own truck. Tuner's manager notices that some of the cartons have scrape marks. Tuner's owner phones Signal's office and asks whether the sets might have been damaged as they were being loaded. Signal assures Tuner that the sets are in perfect condition. Tuner tenders Signal a check, which Signal refuses, claiming that the first delivery to new customers is always for cash. Tuner promises to pay the cash within two days. Signal leaves the sets with Tuner, which stores them in its warehouse pending its "Grand Opening Sale" on May 15. Two days later, Tuner's stocker opens some of the cartons and discovers that a number of the sets are damaged beyond ordinary repair. Signal claims Tuner has accepted the sets and is in breach by not paying on delivery. Will Signal succeed on these claims? Explain.…

    • 475 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Great Western Bank

    • 1827 Words
    • 8 Pages

    The truck gets involved in an accident when it was passing through Illinois and all the machines were a total loss. Data Max told the bank that title was passed to the bank when the goods were loaded in the truck and the machines were sold to you F.O.B. Cincinnati. So, it is not Data Max’s responsibility to refund the money. Great Western Bank made a point that they designated a particular carrier, but the goods were shipped via a different carrier. Data Max replied by saying that, still the Bank paid the invoice to get discount.…

    • 1827 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Barbara buyer memo

    • 444 Words
    • 2 Pages

    I was told about the details of your situation. I am aware that you want to bring a lawsuit against Sam salesperson and the seller. I have done some research and gathered the following information for you.…

    • 444 Words
    • 2 Pages
    Good Essays
  • Good Essays

    This report will examine the contract between Millie, the seller, and Frank, the purchaser and the possibility of breach of contract.…

    • 449 Words
    • 2 Pages
    Good Essays
  • Good Essays

    After reading this case anyone would say that the ABC Auto Parts and Auto Zone Co. didn’t entered into a proper written agreement and neither of them signed any legal contract. So, it’s a clear indication that there no legal contract signed by both parties. Furthermore, a presentation by ABC of its good at Auto Zone premises and Auto Zone places an order verbally, it doesn’t create a valid contract when the contract amount is more than $500. So, if ABC brings a lawsuit against the Auto Zone than Auto Zone as a buyer in their defense may raise this question; one, there no contract has been signed and two there no place of delivery determined by both party. However, for ABC this is not a lost cause because, after their meeting, ABC did send Auto…

    • 586 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Knzales And Barkley Case

    • 2126 Words
    • 9 Pages

    There are several things that have gone wrong in the case we were given to examine. Knarles had left his 17-year-old son Barkley to look after the Maryland based facilities maintenance business while Knarles attended a convention in Hawaii. The exact scope of the duties to be performed in Knarles’ absence was not given to the reader. Knarles and Barkley’s company had a roster of satisfied clients who they maintained a working relationship without the benefit of a signed renewal contract. Knarles had a professional relationship with his clients for a number of years, an express contract would not be considered unusual under these circumstances. Part of the services Knarles and Barkley (referred to hereafter as K & B) provided was a paid replacement of outdated and…

    • 2126 Words
    • 9 Pages
    Better Essays
  • Better Essays

    Law Bridging Assignment

    • 1710 Words
    • 7 Pages

    Goldsmith International Business School, Free Resources, Breach Of Contract Notes, Page 1. (n.d.). Retrieved from http://www.goldsmithibs.com/resources/free/Breach-of-Contract/notes/Breach-of-Contract-Remedies.pdf…

    • 1710 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    contract

    • 394 Words
    • 2 Pages

    If Buyer’s failure to make payment, to establish a letter of credit or otherwise to perform its obligations hereunder is reasonably anticipated, Seller may demand that Buyer provide, within a reasonable time, adequate assurance satisfactory to Seller of the due performance of this Contract and may withhold shipment or delivery of the undelivered Goods until such assurance if given.…

    • 394 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Law on Sales Reviewer

    • 14544 Words
    • 59 Pages

    |there is a contrary agreement |delivery. Ownership passes to the buyer only upon full payment of|…

    • 14544 Words
    • 59 Pages
    Good Essays
  • Good Essays

    Mba Question & Answer

    • 4291 Words
    • 18 Pages

    contract is a legally binding agreement relationship that exist between two or more parties to do obstain from perfoming certain acts. An agreement is form of ceios reference between different parties, which may be written, oral and lies upon the no of the parties for its fulfillment rather the being in anyway enforceable. It follows, therefore, that the loss of profit here cannot reasonnily be considered such a consequence of the breach of contract as could have been family and reasonably contemplated by both the parties when they made this contract.…

    • 4291 Words
    • 18 Pages
    Good Essays
  • Good Essays

    AUTO PARTS LTD, Nanor (plaintiff) entered into a contract with Auto Parts Ltd to buy a Nissan Homer. He paid ¢19,000.00 to Auto Parts for the price of the vehicle and Auto Parts promised to get the vehicle ready for collection by 29 December 1977 which the failed to deliver.…

    • 1431 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Clarkson V. Orkin (1985)

    • 322 Words
    • 2 Pages

    Analysis: Mrs. Clarkson contracted Orkin to perform decontamination in her house due to termite’s infestation. Even though, Mrs. Clarkson elected to take a lowest option from the various options of services that Orkin offers. Mrs. Clarkson was still guaranteed for proper performance of an inspection, treatment and re-treatment in case of future infestations. Due to negligent operation of Orkin when inspecting the house, termites where found in a later day, and those termites where treated by a different contractor. This contractor had a cost. Which was the main issue that Mrs. Clarkson was seeking to be reimburse. Mrs. Clarkson was also seeking for punitive and actual damages that came from the sequence of events.…

    • 322 Words
    • 2 Pages
    Satisfactory Essays