Lucy contracts to buy six cases of vintage wine from Mountainside Vineyards for $1,200 . The contract states that delivery is to be made at Lucy's residence "on or before June 1, to be used for niece's wedding reception on June 2." On June 1,
Mountainside's delivery vehicle is involved in an accident, and no wine is delivered to Lucy. On the morning of June 2, Lucy buys the wine from Nature's Vintner. That afternoon, just before the reception, Mountainside tenders delivery of the wine at Lucy's residence. Lucy refuses tender. Mountainside sues Lucy for breach of contract. How is the court most likely to rule?
In most courts, the decision will rest on whether the inclusion of the contract clause "to be used for niece's wedding reception on June 2" created an ex-press condition render-ing 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 per-formance constitutes a material breach and discharges any duty or liability of the other party. If the time for per-formance is not of the essence, a reasonable time for perfor-mance 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 de-lay.
In this problem, although June 2 would ordinarily be a reasonable time for perfor-mance, the inclusion of the phrase giving the use of the wine and date of the recep-tion would render the time vital to performance and would require strict compliance. Mountainside's failure to deliver on June 1 is a material breach releasing Lucy from any liability under the contract.
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