An injured party cannot elect to treat a breach as discharging him or her from its obligations under a contract unless
A)the breaching party elects to treat the breach as discharging him or her from contractual obligations.
B)the breaching party suffers financial loss.
C)the innocent party suffers financial loss.
D)the breach causes physical injury.
E)it is of the whole contract or an essential part of the contract.

Question

Quizplus · Accepted Answer

An injured party can only treat a breach as discharging them from obligations under a contract if it is of the whole contract or an essential part of the contract. This is because minor or non-essential breaches do not excuse the performance of the injured party. Options A, B, C, and D are incorrect because they do not accurately reflect the circumstances under which an injured party can treat a breach as discharging them from their contractual obligations.

An Injured Party Cannot Elect to Treat a Breach as Discharging