Question

Alberta and Bob make a contract. Bob breaches, so Alberta puts an end to the contract. Alberta's action will constitute a

A. termination.
B. cancellation.
C. both of the above.
D. none of the above

Answer 1

Alberta's action to put an end to the contract due to Bob's breach is considered a cancellation. Termination can occur for various reasons, but since this case pertains to a breach, the action specifically constitutes a cancellation.

Step-by-step explanation:

When Alberta decides to put an end to the contract due to Bob's breach, this action can be termed as cancellation of the contract. Terminating a contract because of a breach means that Alberta is exercising her right to cancel the agreement because Bob did not fulfill his obligations. So the correct answer is B. cancellation. It is different from a simple termination of a contract, which can be due to various reasons that may not necessarily be a breach. For example, some contracts have built-in termination clauses that allow either party to end the contract under specific circumstances without any breach occurring. In this case, since it is directly connected to the breach, it is considered a cancellation.