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 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) If Khan presses Rahilly to perform according to the contract, it is possible that the contract could be ended by frustration.
B) If Khan presses Rahilly to perform according to the contract, it is possible that the contract could be ended by performance.
C) Khan must wait to see if Rahilly really fails to perform the contract before Khan can sue.
D) The contract has been repudiated, and Khan can elect to acknowledge the breach and sue Rahilly right away.
E) 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.

Question

Quizplus · Accepted Answer

Khan does not need to wait until the performance date to sue because Rahilly's clear indication of not performing constitutes an anticipatory breach, allowing Khan to sue immediately.

Rahilly Entered into a Contract with Khan, Whereby Rahilly Agreed