Evan owns a business that produces various forms of marketing and promotional materials.Andrea entered into a contract with him.He was required to design a website for her business by June 1 and she was required to pay $100 000 on July 1.Because of an administrative error,however,Evan confused Andrea's order with the order of another customer.Consequently,by June 1,he had printed 10 000 copies of a glossy magazine for another customer,but he had not even started work on Andrea's website.Although it is not yet July 1,Andrea has changed her mind and she no longer wants to pay $100 000 to Evan in exchange for a website.Which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

The key issue in this scenario is whether Evan or Andrea committed a breach of a contractual condition. A breach of a condition is a serious breach of the contract that goes to the root of the contract, while a breach of a warranty is a minor breach that does not go to the root of the contract. In this case, Andrea's obligation to pay $100,000 on July 1 is a condition of the contract, as it is an essential term that goes to the root of the contract. Evan's obligation to design a website by June 1 is also a condition of the contract, as it is an essential term that goes to the root of the contract.

However, in this case, it is clear that Evan has committed a breach of a condition by failing to design a website by June 1, as required by the contract. This breach substantially deprives Andrea of the expected benefit of the contract, as she entered into the contract specifically for the purpose of getting a website designed. Therefore, Andrea is entitled to discharge the contract because Evan committed a breach of a contractual condition that substantially deprived her of the expected benefit of the contract.

Evan Owns a Business That Produces Various Forms of Marketing