Question

Roller Rides Inc. contracted to build an amusement ride for Canobie Lake Park. The contract specified that the ride was to be completed, tested and fully operational by May 31st, the day before the opening of the Park. The contract stated "time is of the essence." Roller Rides Inc. encountered design delays and the ride was not ready on May 31st. Is Roller Rides Inc. liable for breach of contract ?

Answer 1

Roller Rides Inc. is likely liable for breach of contract since they did not fulfill their obligation by the specified date and the contract explicitly stated that time was critical with a 'time is of the essence' clause.

Step-by-step explanation:

When Roller Rides Inc. entered into a contract with Canobie Lake Park with a specific completion date stated and a clause that 'time is of the essence,' it accepted that timely completion was a critical part of the agreement. If Roller Rides Inc. failed to complete the amusement ride by the specified date, they would generally be considered in breach of contract unless they can demonstrate a valid legal excuse for the delay, such as conditions that could qualify as force majeure. The specific clause indicating that time is of the essence underscores the importance of the deadline and implies that any delay would be a material breach, likely entitling the other party to legal remedies, including but not limited to damages compensation or contract cancellation.