Where there has been a material breach of contract,the nonbreaching party ________.
A) cannot treat the contract as being in effect
B) is strictly liable to complete performance under the contract
C) is allowed to rescind the contract
D) can be sued by the breaching party

Question

Quizplus · Accepted Answer

When there is a material breach of contract, the nonbreaching party is allowed to rescind the contract, which means they can cancel the contract and be released from further performance obligations. The nonbreaching party may also choose to sue for damages caused by the breach. Option A is incorrect because the nonbreaching party cannot treat the contract as being in effect once there has been a material breach. Option B is incorrect because the nonbreaching party is not strictly liable for completing performance under a breached contract. Option D is incorrect because it is the breaching party that can be sued by the nonbreaching party for damages caused by the breach.

Where There Has Been a Material Breach of Contract,the Nonbreaching