Exercise 5
This exercise is about breach of contract.
Green Company has a contract with Red Company to buy 400 golf balls, to be delivered to Green Company on July 16. The contract states that “time is of the essence.” On July 18, Red Company delivers the 400 golf balls to Green Company. Green Company refuses to accept the golf balls because of the delay and sues Red Company for breach of contract.
How should the judge rule?
- A. For Green Company, because the late delivery of golf balls constituted a material breach.
- The correct answer is A. If a contract for the sale of goods provides for a specific delivery date or states that "time is of the essence," any late delivery is considered a material breach.
- B. For Red Company, because the delivery was only two days late.
- Sorry, but that's not the correct answer. Please select another.