Fact Pattern 17-1Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments.
-Refer to Fact Pattern 17-1.With respect to Mutual's duties,Neil's performance most likely
A) discharges Mutual from the contract.
B) has no effect on Mutual's performance.
C) increases Mutual's duties under the contract.
D) suspends Mutual's duty to perform.

Question

Fact Pattern 17-1Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments.
-Refer to Fact Pattern 17-1.With respect to Mutual's duties,Neil's performance most likely​ 
A) ​discharges Mutual from the contract. 
B) ​has no effect on Mutual's performance. 
C) ​increases Mutual's duties under the contract. 
D) ​suspends Mutual's duty to perform.

Quizplus · Accepted Answer

Neil's failure to perform his duties adequately constitutes a breach of contract, which can discharge Mutual from its obligations under the contract.

Fact Pattern 17-1Mutual Company Enters into a Contract to Employ