Home Construction LLC enters into a contract with Irene to build a house. Before Home starts to work, the market price for its services increases-in effect, Home will lose money by if it fulfills its contract with Irene. Home notifies her that it will not perform. Home's obligation to perform is
A) breached.
B) discharged.
C) rescinded.
D) suspended.

Question

Home Construction LLC enters into a contract with Irene to build a house. Before Home starts to work, the market price for its services increases-in effect, Home will lose money by if it fulfills its contract with Irene. Home notifies her that it will not perform. Home's obligation to perform is
A) ​breached.
B) ​discharged.
C) ​rescinded.
D) ​suspended.

Quizplus · Accepted Answer

Home Construction LLC's obligation to perform is breached because they notified Irene that they will not fulfill the contract due to increased market prices, which does not discharge their obligation.

Home Construction LLC Enters into a Contract with Irene to Build