T.T. Inc. creates and sells hats. The Local Ironworkers 452 have contracted with T.T. Inc to purchase 150,000 hats for $15,000 with a delivery date of July 1. Local Ironworkers 452 paid a $5,000 deposit upon signing the contract, with the remaining $10,000 balance due when the hats are delivered. In the contract, Local Ironworkers 452 specified that "time is of the essence due to a local union campaign." Local Ironworkers 452 has reason to believe from another local chapter that there was an issue in the hats arriving a day after an important rally. After requesting reassurances, T.T. Inc. fails to respond within 35 days. What may happen to T.T. Inc. if they fail to deliver the hats timely?

Question

Quizplus · Accepted Answer

The contract may be considered breached if T.T. Inc. fails to deliver the hats on time, especially since "time is of the essence" was specified. This could lead to the contract being repudiated and allow Local Ironworkers 452 to recover contractual damages due to the breach.

TT Inc Creates and Sells Hats