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