Skyline Builders and Pine Lumber had a contract, calling for Pine Lumber to deliver a certain quantity of bricks to Skyline's place of business on the first of every month for one year. Pine delivered the bricks one week late for the first six months, but Skyline did not object. When Pine delivered the bricks one week late, as usual, in the seventh month, Skyline attempted to cancel the contract because of the late delivery. Which of the following is true about this scenario?
A) Pine will have to return the delivery fee of the first six months because it broke the contract.
B) Skyline does not have the legal right to modify the contract.
C) Pine is not in breach because the delivery was made at the intended place of business.
D) Skyline has waived its right to cancel the contract.

Question

Quizplus · Accepted Answer

Skyline has waived its right to cancel the contract because it accepted Pine's late delivery for six months. In such a scenario, the decision to cancel cannot be based on the reason that Pine made a late delivery in the seventh month. In a contract in which there are a number of instances of partial performance (such as deliveries or payments) by one party, the other party must be careful to object to any later deliveries or payments. If the other party does not object, it may be waiving its right to cancel the contract if other deliveries or payments are late.

Skyline Builders and Pine Lumber Had a Contract, Calling for Pine