Which of the following actions if taken by one party to a contract generally will discharge the performance required of the other party to the contract?
a. Tender.
b. Material breach of the contract.
c. Delay in performance.
d. Assignment of rights.
Explanation
Choice "b" is correct. A material breach generally will discharge the nonbreaching party.
Choice "c" is not as good an answer as "b". While a delay in performance could cause a discharge, it will do so only in a UCC Sales contract, a contract stating that time is of the essence, or if the delay otherwise materially breaches the contract.
Choice "a" is incorrect. Generally if a party tenders performance, the other party will also have to perform. Tender of performance does not discharge the other party.
Choice "d" is incorrect. Generally, contracts are assignable, and an assignment of rights will not discharge the other party from performing.
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