Elin contracts to buy six cases of vintage Fertile Valley wine from Grapes & Vines Winery for $1,200. The contract states that delivery is to be made at Elin's residence "on or before May 1, to be used for daughter's wedding reception on May 2." On May 1, Grapes & Vines's delivery van is involved in an accident, and no wine is delivered that day. On the morning of May 2, Elin buys the wine from Happy Hill Winery. That afternoon, just before the reception, Grapes & Vines tenders delivery of the wine at Elin's residence. Elin refuses tender. Grapes & Vines sues Elin for breach of contract. How is the court most likely to rule?
What will be an ideal response?
In most courts, the decision will rest on whether the inclusion of the contract clause "to be used for daughter's wedding reception on May 2" created an express condition rendering the time of performance vital to the purpose of the contract. If the time stated is of the essence, the time for performance must be strictly complied with. Any failure of full performance constitutes a material breach and discharges any duty or liability of the other party. If the time for performance is not of the essence, a reasonable time for performance is allowed. A late performance in such a case does not constitute a material breach, but the party rendering late performance is liable for damages caused by the delay. In this case, although May 2 would ordinarily be a reasonable time for performance, the inclusion of the phrase giving the use of the wine and date of the reception would render the time vital to performance and would require strict compliance. Grapes & Vines's failure to deliver on May 1 is a material breach releasing Elin from any liability under the contract.
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What will be an ideal response?
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