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Action Mart purchased a large shipment of items from Excel Distributors on April 1, 2020. The contract stipulated that payment be made in equal monthly installments over a 12-month period, with payment due on the 1st day of each month. Action made the first 4 payments on time with no problem. The company then defaulted in the following two months when their business slowed down. On November 1, 2020 payment resumed, but because Action was still having financial difficulties, only a partial payment was made. Another partial payment was made (late) on December 15, 2020. Since then no further payments have been made. Action Mart now indicates they were dissatisfied with the products and will not be making any further payments. Which of the following is true? Choose one of the following: a. .Excel has until December 15, 2022 to commence an action for breach of contract b..Excel has until April 1, 2022 to commence an action for breach of contract.

1 Answer

1 vote

Final answer:

The correct option is b. Excel has until April 1, 2022, to commence an action for breach of contract.

Step-by-step explanation:

The correct option is b. Excel has until April 1, 2022, to commence an action for breach of contract.



According to the contract, payment was supposed to be made in equal monthly installments over a 12-month period, with payment due on the 1st day of each month. Action Mart made the first 4 payments on time, but defaulted in the following two months. However, payment resumed on November 1, 2020, with a partial payment, and another partial payment was made on December 15, 2020. Since then, no further payments have been made.



Even though Action Mart indicates they were dissatisfied with the products, their dissatisfaction does not release them from their contractual obligation to make payments. According to the contract terms, Excel Distributors still have until April 1, 2022, to commence an action for breach of contract.

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