Akiko buys a bus from Love Bus Company, paying $1,000 down and agreeing to pay o

Question

Akiko buys a bus from Love Bus Company, paying $1,000 down and agreeing to pay off the balance in thirty-six monthly payments of $200 each. The terms of the agreement call for Akiko to make a payment on or before the first of each month, beginning March 1. During the first six months, Love receives a $200 payment before the first of each month. Starting in September, however, and continuing for the subsequent five months, Akiko’s payment is never made until the fifth of the month. Love accepts and cashes the payment check each time. Before the next payment is due, Love decides that it is no longer willing to accept late payments. Can Love sue Akiko immediately for breach? Can Akiko continue to make late payments without liability? Explain.

Explanation / Answer

W3Htever the both parties are agreed upon it should be followed. Any deviation than the terms of the contract will cause the breach of contract and other party may sue in the court of law for compensation.

In this particular case the agreement was to pay the installment on or before 1st date of month hence the payment has to be done on mutually agreed terms.

Love can sue Akiko immediately for breach of the contract and Akiko cannot make a late payment without any liability. He has to pay the amount on or before the 1st of every month.

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