Commercial Construction,Inc.(CCI),contracts to build a store for Rita's Pizza Company with Rita's payment due on June 1.On June 1,Rita's bank is closed,and for this reason,Rita's claims it cannot pay on time.In this situation
A)CCI is in breach of contract.
B)Rita's is in breach of contract.
C)the contract is discharged.
D)the contract is suspended.

Question

Quizplus · Accepted Answer

Rita's is in breach of contract as they failed to make payment on the agreed upon date. The fact that their bank was closed is not a valid excuse for non-payment. However, CCI may choose to grant an extension or pursue legal action for breach of contract.