Question

Jerry contracts in writing to sell his 2015 Polaris ATV to Robert for $11,000. Jerry agrees to deliver the ATV on Friday, and Robert promises to pay the $11,000 on the following Monday.

On Thursday, Robert tells Jerry that he changed his mind and will not buy the ATV.

Over the weekend, Robert changes his mind again and tenders $11,000 to Jerry on Monday.

Jerry has not sold the ATV to another party but refuses the tender and refuses to deliver.

Robert claims that Jerry has breached their contract.

Jerry contends that Robert’s repudiation released him from his duty to perform under the contract.

Explain who is correct, and why

Answer 1

“Breach of contract is defined as a failure of one of the parties to fulfill its contractual obligation.”

Here there is a contract between Jerry and Robert, the terms of the contract are as follows:

• Robert agrees to buy Polaris ATV for $11,000.
• Robert agrees to pay Jerry $11,000 as per contract on Monday
• Jerry agrees to deliver the ATV on Friday
• Thursday Robert tell Jerry he will not buy the ATV
• Again, Robert changes his mind on Monday and pays $ 11,000 to Jerry.
• Jerry Refuses to sell to Robert stating Robert repudiation had released him from the contract.

Jerry is correct, as when Robert has repudiated the contract, the contract is no longer valid. Jerry is still the owner of the ATV as there is financial transaction related to the matter yet and the ATV was not yet delivered to Robert.

“Repudiation is established in this case as Robert has verbally conveyed to Jerry his inability to perform the contract and expressed his intention not to perform its obligations.”