An independent trucker and a manufacturer enter into a contract to deliver a farming implement. The trucker, however, delivers to a third party before delivering to the farmer, and the manufacturer refuses to pay. Who breached the contract?

Study for the Themis Contracts Exam. Practice with comprehensive quizzes with flashcards and multiple choice questions, each question comes with detailed explanations. Be fully prepared for your exam!

Multiple Choice

An independent trucker and a manufacturer enter into a contract to deliver a farming implement. The trucker, however, delivers to a third party before delivering to the farmer, and the manufacturer refuses to pay. Who breached the contract?

Explanation:
The main idea is that performance in a delivery contract is met when the goods are tendered to the designated recipient or to an authorized agent. Delivering to a third party isn’t automatically a breach if that third party is authorized to receive the goods or if the contract contemplates delivery through intermediaries. Here, the trucker handed the farming implement to a third party before finishing delivery to the farmer, which can still count as proper tender under a shipment or agency arrangement. Because delivery to the authorized recipient occurred, there is no breach by the trucker, and the manufacturer’s refusal to pay would be improper. So, given the information provided, neither party breached the contract.

The main idea is that performance in a delivery contract is met when the goods are tendered to the designated recipient or to an authorized agent. Delivering to a third party isn’t automatically a breach if that third party is authorized to receive the goods or if the contract contemplates delivery through intermediaries. Here, the trucker handed the farming implement to a third party before finishing delivery to the farmer, which can still count as proper tender under a shipment or agency arrangement. Because delivery to the authorized recipient occurred, there is no breach by the trucker, and the manufacturer’s refusal to pay would be improper. So, given the information provided, neither party breached the contract.

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