Credit : iata.org
  1. Which statement is correct?
    1. Any nonperformance when performance is due is a breach.
    1. A party has not breached if he has substantially performed.
  2. If a court determines that a party has substantially performed, then the other party
    1. has the right to terminate the contract.
    1. has the right to suspend performance.
    1. has no rights.
    1. may seek damages for any loss caused by the breach.
  3. If enforced by the court, what is the typical effect of a “time is of the essence” clause?
    1. A partially breaching party who is late in performing is given time to cure the breach.
    1. The clause negates the right of the breaching party to cure if he is late in performance
  1. In applying the first factor of the materiality test (amount of benefit not received), a 90% completion rate always constitutes substantial performance.
    1. True
    1. False
  2. In applying the factor of good faith in the materiality test, courts automatically consider any bad faith breach to be a material breach.
    1. True
    1. False