Fact Pattern 14-3
Business Computer Solutions Education Service enters into a contract to employ Chandra as an instructor for two years to begin June 1. One month before the term begins, Business Computer is underbid by a competitor and loses a major client, Debt Consolidation Corporation. Business Computer now refuses to hire Chandra.
-Refer to Fact Pattern 14-3. Under the circumstances, with respect to damages, Chandra can
A) bring an action immediately.
B) bring an action only after the contract's two-year term begins.
C) bring an action only after the contract's two-year term ends.
D) do nothing.

Question

Fact Pattern 14-3 
Business Computer Solutions Education Service enters into a contract to employ Chandra as an instructor for two years to begin June 1. One month before the term begins, Business Computer is underbid by a competitor and loses a major client, Debt Consolidation Corporation. Business Computer now refuses to hire Chandra.
-Refer to Fact Pattern 14-3. Under the circumstances, with respect to damages, Chandra can
A) bring an action immediately.
B) bring an action only after the contract's two-year term begins.
C) bring an action only after the contract's two-year term ends.
D) do nothing.

Quizplus · Accepted Answer

Chandra can bring an action immediately for breach of contract by Business Computer Solutions Education Service. Business Computer's refusal to hire Chandra constitutes a breach of contract even though the contract has not yet begun. Chandra is entitled to damages resulting from this breach.