Quest Resources, Inc, contracts with Ring Communications Corporation (RCC) for RCC to design and build an all-weather communications sys-tem for Quest's field operations. RCC builds the system, but it func-tions effec-tively only in good weather. Is this a breach of the contract? If so, what remedies does Quest have?
Performance far below reasonable expectations is not sub-stantial. When performance is not substantial, a breach is material. The non-breaching party is excused from performing and can sue for dam-ages caused by the breach. Any breach entitles the non-breaching party to sue for damages, but only a material breach discharges the non-breach-ing party from the contract. In this question, the contract asked for an all-weather communications system, but the system func-tioned effec-tively only in good weather. Thus, Quest is excused from paying for the system and can sue for damages caused by the breach.
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