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Exercise 7

This exercise is about breach of contract.

Contracts Ex. 7Mr. Brown makes a contract for Mr. Yellow to do repair work to his living room, which is to be finished by June 3. Mr. Yellow comes down with a bad case of the flu and is delayed in finishing the work. He is able to complete the work on June 8. Mr. Brown sues Mr. Yellow for breach of contract.

How should the judge rule?

A. In Mr. Brown’s favor, because Mr. Yellow’s delay was a material breach of the contract.
Sorry, but that's not the correct answer. Please select another.
B. In Mr. Yellow’s favor, because the breach was minor.
B is the correct answer. Although the contract specified June 3, this is a contract for services, not a sale of goods, and there is no indication that the contract included a "time is of the essence" clause. Therefore, a reasonable delay in the performance of the contract is not a material breach and the judge should rule in Mr. Yellow's favor.