When Form 8865 Constructive 2023-2024

We will now deal with the issues surrounding breach of contract. We will first consider what it means to breach a contract. We will then explore what it means for a breach to be material. Finally, we will explore how the law imposes certain constructive conditions on issues surrounding a breach of contract. It is important to point out at the outset that a constructive condition operates in a very different way from an express condition, which we explored in the last module. So let's begin with breach, which is defined in section 235 of the Restatement of Contracts. Section 235 states that when a party has fully ed such an obligation, that party's duty is discharged. In contrast, when a party fails to such an obligation, the non-ance is known as a breach. In other words, a breach is a failure to honor a contractual promise when the time for ance of that promise comes due. Breaching a contract allows the non-breaching party to sue for damages that resulted from the breach. But not all breaches are equal. Some breaches impair the value of the contract to the non-breaching party to a much greater extent than do other breaches. Accordingly, depending on its severity, contract law allows different responses to a breach from the non-breaching party. The most severe breaches are material breaches. A material breach undermines the very value of the contract to the non-breaching party and disappoints the underlying expectations that led that party to enter into the contract in the first place. Determining whether a breach is material considers not only the loss incurred by the non-breaching party but possible forfeiture to the breaching party if the contract is terminated as a result of the breach. In effect, the Restatement creates three categories of breaches: one, breaches that are...