If a Nonconforming Installment Substantially Impairs the Value of a Whole

question 9

True/False

If a nonconforming installment substantially impairs the value of a whole contract, the buyer can treat the entire contract as having been breached.

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Definitions:

Standard Labor-Hours

The expected amount of time that it should take to produce one unit of a product or complete a process.

Fixed Overhead

Indirect costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Budget Variance

The difference between budgeted or planned financial activity and the actual financial performance.

Fixed Overhead

Costs that do not change with the level of production or business activity, such as rent, salaries of permanent staff, and insurance.