In an installment contract, how may a party's waiver occur when there is a breach?

In an installment contract, how may a party's waiver occur when there is a breach?

• A. A waiver requires a written agreement.
• B. A waiver cannot occur if performance is an installment.
• C. If a party knowingly accepts late or nonconforming performance, that may operate as a waiver of the breach, and estoppel may prevent later assertion.
• D. Estoppel never applies to installment contracts.

Answer: (C)

In contract law, a waiver of a breach can occur through the other party’s conduct when they knowingly accept late or nonconforming performance. In an installment contract, where performance is due in parts, accepting a late or nonconforming installment can be treated as a waiver of the breach for that installment, even without a written agreement. This waiver can be express or implied by conduct. Estoppel can apply to prevent later assertion of the breach if the party accepting the late or nonconforming performance relied on that acceptance or changed their position because of it. For example, continuing to do business after accepting a late installment can make it unfair to claim the breach later.

In contract law, a waiver of a breach can occur through the other party’s conduct when they knowingly accept late or nonconforming performance. In an installment contract, where performance is due in parts, accepting a late or nonconforming installment can be treated as a waiver of the breach for that installment, even without a written agreement. This waiver can be express or implied by conduct.

Estoppel can apply to prevent later assertion of the breach if the party accepting the late or nonconforming performance relied on that acceptance or changed their position because of it. For example, continuing to do business after accepting a late installment can make it unfair to claim the breach later.