Which of the Following Would Be Considered a Material Breach

question 21

Multiple Choice

Which of the following would be considered a material breach of a contract?

• A) Partial performance that omits some essential part of the contract.
• B) Delivery of 50 chairs in a contract that calls for 100 chairs.
• C) An intentional breach of the contract.
• D) All of these would be material breaches.

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Definitions:

Direct Labor

The labor costs directly associated with the production of goods or services, typically involving manufacturing or construction work.

Selling and Administrative Expenses

Costs associated with the selling of products and the management of the business.

Fixed Overhead

The total non-variable costs associated with operating a business, including rent, salaries, and insurance, that remain unchanged regardless of the level of production or sales.

Direct Labor

The wages and other forms of remuneration paid to employees who directly work on the products being manufactured, such as assembly line workers.