Once he got the plans from Homer, Krusty entered into a contract to have Burns Construction build Krusty World for $35 million in 2 years. The contract stipulates that Krusty will pay three installments: $15 million at 6 months after the contract date, $10 million at 1 year after the contract date and $10 million at 2 years after the contract date. ed by Krusty Burns Construction began work immediate like the after the contract wa and Mr. Burns, the CEO of Burns Construction. Krusty paid the first installment of $15 million on time but his cheque for the second installment bounced. Burns Construction has already incurred construction costs of $22 million and cannot afford to continue the project without the money from the second installment payment. Krusty refuses to pay anything further to Burns Construction until the project is completed. (Note: The contract states that time is of the essence.)

1. What type of breach of contract has Krusty committed?

A.Breach of warranty

B. Breach of condition

C. nvitation to treat

2.To support your choice above, (1) state the applicable law and (2) apply that law to the fects of this case.