Hapless Contractors, Inc. has retained several subcontractors pursuant to its Department of Justice contract. Perky's Plumbing, LLC is a subcontractor laying drainage pipe in the parking structure. While working, Mr. Perky was served with divorce papers on the job site. He became extremely distraught, instructed his crew to "go home" and left the pipe work uncompleted and in disarray. As a result, the government sends Hapless a notice that it is in default. Hapless disagrees, stating Perky's Plumbing walked off the job, not Hapless.

Is Hapless asserting a good defense, or may the government hold Hapless in default for Perky's departure? Explain your answer using I.R.A.C. Give a solid legal analysis to support your conclusion.