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– Nelson Mandela

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Chapter 15(2) Discussion

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Q Congressman A was caught by Congressman B in possession and use of illegal drugs and in the company of several prostitutes. Instead of reporting him to the authorities, Congressman B tells Congressman A that he will ignore what he just witnessed if Congressman A gives Congressman B $10,000 cash. Congressman A reluctantly agrees in writing. If Congressman A subsequently refuses to pay, could Congressman B sue him for breach of contract?

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Normally, business contracts create certain obligations that need to be fulfilled by the parties who have entered into an agreement. Judicially, one party’s failure in trying to fulfill any of its legal obligations is mostly known as a “Breach of contract”. Further based on certain specifics, a breach of contract is likely expected to occur when any party fails to actually perform on time does not perform as per the rules aforementioned or does not perform at all. A breach of contract is normally categorized as either a material or immaterial for that particular purpose that plays an integral role in evaluating the most appropriate legal solution as well as remedy caused for the breach of contract (Cooter & Eisenberg, 1985).