Rahilly entered into a contract with Khan, whereby Rahilly agreed to paint a portrait of Khan's wife to be completed by her 30th birthday, six months from the time of this agreement. Three months before the portrait was to be completed, Rahilly told Khan that he would not be doing the portrait because he had accepted a job in Boston and was leaving immediately. Which of the following is false with regard to the rights of the parties in this situation?
A) The contract has not been frustrated because there was no unforeseen event beyond the control of either party making it impossible or meaningless to perform the contract.
B) The contract has been repudiated, and Khan can elect to acknowledge the breach and sue Rahilly right away.
C) Khan must wait to see if Rahilly really fails to perform the contract before Khan can sue.
D) If Khan presses Rahilly to perform according to the contract, it is possible that the contract could be ended by frustration.
E) If Khan presses Rahilly to perform according to the contract, it is possible that the contract could be ended by performance.

Question

Quizplus · Accepted Answer

DC) Khan does not need to wait to see if Rahilly fails to perform the contract before suing. Rahilly's clear statement that he will not perform the contract constitutes anticipatory breach, allowing Khan to take legal action immediately.D) The contract cannot be ended by frustration simply because Khan presses Rahilly to perform. Frustration occurs when an unforeseen event makes contractual obligations impossible or radically different, not due to pressure from one party on another to fulfill their obligations.

Rahilly Entered into a Contract with Khan, Whereby Rahilly Agreed