Standard Construction, Inc. (“SCI”), contracts to build a new factory for Martha Stewart’s Chocolate Company (“MSCC”), with MSCC’s payment due on June 1. On June 1, MSCC’s bank is closed, and for this reason, MSCC claims it cannot pay SCI on time. In this situation
SCI is in breach of contract
MSCC is in breach of contract
The contract is fully discharged due to commercial impossiblity
The contract is suspended forever
Expert Answer
The correct answer is MSCC is in breach of contract.
The right to end the contract needs that the other party’s non-performance in basic. The type of non-performance is irrelevant, it
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