Fact Pattern 17-B2
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1.One month before the term begins,Bell is underbid by a competitor and loses a major client,Delta Hospital Center.Bell now refuses to hire Chris.
-Refer to Fact Pattern 17-B2.Bell's repudiation is most likely
A)a material breach.
B)a minor breach.
C)Chris's breach.
D)no breach.

Question

Fact Pattern 17-B2 
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1.One month before the term begins,Bell is underbid by a competitor and loses a major client,Delta Hospital Center.Bell now refuses to hire Chris.
-Refer to Fact Pattern 17-B2.Bell's repudiation is most likely
A)a material breach.
B)a minor breach.
C)Chris's breach.
D)no breach.

Quizplus · Accepted Answer

Bell's refusal to hire Chris one month before the contract is set to begin is a material breach because it goes to the heart of the contract and deprives Chris of the benefit he was expecting under the agreement. The fact that Bell lost a client is not a valid excuse for their breach of contract.