Question

Medical Accounts Collection enters into a contract to employ Natalie as a billing and credit manager for two years. During the first year, Natalie is often absent without explanation and when present fails to adequately do her job. Refer to Fact Pattern, ​Natalie’s performance most likely:

A. undercuts Medical Accounts’ duties under the contract.​B. has no effect on Medical Accounts’ performance.​C. discharges Medical Accounts from the contract.​D. suspends Medical Accounts’ duty to perform.

Answer 1

Answer:

Correct option is (C)

Explanation:

A contract is held valid if both the parties to the contract fulfill their obligations and responsibilities. Even if one of the parties fail to perform their obligations, the other party to the contract is discharged of the contract.

Here, Natalie failed to perform the main aspect of the contract which is to do her  job adequately. So, Medical Accounts is discharged from the contract by law.