MONEY MORTGAGE AND INVESTMENT CORP., APPELLANT,
v.
CPT OF SOUTH FLORIDA, INC., APPELLEE
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Money Mortgage sought reversal of a judgment for breach of contract, arguing that the trial court erroneously ruled its eighteen-month delay in claiming breach was unreasonable and precluded recovery. The appellate court reversed, finding that Money Mortgage promptly notified CPT of defects and reasonably allowed time for cure before revoking acceptance.
The eighteen-month delay was not unreasonable because Money Mortgage promptly notified CPT of the defects, gave CPT ample opportunity to cure, and only revoked acceptance after CPT's remedial efforts failed. Money Mortgage did not delay unreasonably in asserting breach, and CPT's inability to conform the system after eighteen months demonstrated clear breach of both contract and warranty obligations.
[1] A delay in asserting a breach of contract is not unreasonable when the non-breaching party promptly notifies the breaching party of defects and allows ample time for reme…
[2] A party's attempts to cure defects in delivered goods, even if prolonged, do not necessarily preclude the other party from revoking acceptance if the defects remain unrem…
Previewing 2 of 3 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“Money Mortgage promptly informed CPT that the computer and software CPT delivered did not conform to the parties' agreement. During the next eighteen months, CPT attempted to cure the problem by creating a computer program acceptable to Money Mortgage.”
Establishes that Money Mortgage gave prompt notice and CPT had ample time to cure defects
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceMoney Mortgage contracted with CPT for a computer system and software. Upon delivery, the computer and software did not conform to the parties' agreem…
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BASKIN, Judge.
Money Mortgage and Investment Corporation [Money Mortgage] seeks reversal of a final judgment and orders awarding costs and attorney’s fees entered in favor of CPT of South Florida, Inc., [CPT] in an action to recover damages for breach of contract. We reverse.
Relying on Central Fla. Antenna Serv., Inc. v. Crabtree, 503 So. 2d 1351 (Fla. 5th DCA 1987), the trial court ruled that Money Mortgage’s delay of eighteen months before claiming a breach of its contract was unreasonable and precluded it from filing an action predicated on breach of contract. The trial court’s ruling was erroneous. Money Mortgage promptly informed CPT that the computer and software CPT delivered did not conform to the parties’ agreement. During the next eighteen months, CPT attempted to cure the problem by creating a computer program acceptable to Money Mortgage. When these efforts failed, Money Mortgage revoked its acceptance. The evidence demonstrates that Money Mortgage did not delay unreasonably in asserting that CPT breached its contract, but promptly notified CPT of the defects in the software and gave CPT ample time to remedy the matter. See Bair v. A.E.G.I.S. Corp., 523 So. 2d 1186 (Fla. 2d DCA 1988), review denied, 531 So. 2d 1355 (Fla.1988). Furthermore, despite eighteen months of performing modifications, CPT was unable to conform the computer system to Money Mortgage’s stated needs, clearly demonstrating its breach of both contract and warranty obligations. We therefore reverse the trial court’s Final Judgment and its judgments awarding costs and attorney’s fees. We remand for a new trial solely as to damages.
Our resolution of this issue makes it unnecessary for us to reach the other points raised on appeal.
REVERSED AND REMANDED.
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Citator
Authorities Cited
- Cent. Fla. Antenna Serv. v. A.M. Crabtree, Jr., 503 So. 2d 1351 (Fla. 5th DCA 1987)
- Bair v. A.E.G.I.S. Corp., 523 So. 2d 1186 (Fla. 2d DCA 1988)