Below is an excerpt from the home loan contract Kyle signed with his bank. “The sum of the principal of the loan and all applicable interest will be divided into 360 monthly payments according to the amortization schedule.

The Buyer shall make each monthly payment by the first day of the month it is due. A payment not received by the first day of the month it is due will be considered delinquent. A payment not received by the fifteenth day of the month it is due will be subject to a late charge of $75.00. If a payment is not received by the last day of the month it is due, the Buyer and transaction shall be reported to the appropriate credit agencies.

In the event of delinquency, the Buyer may divide any payment not received into not more than three equal installments to be included on the next consecutive monthly payments. Notification of the Buyer’s intent to do so must be made by written letter or phone call to the phone number and address listed below within one business week of delinquency.”

Kyle failed to make his payment for this month. He decided to split the missing payment into three installments to be paid over the next three months as described in the contract. Without calling the bank, Kyle sent a check for $1,600 as his each of his next three monthly payment.

Which action invalidates the contract Kyle signed?
a.
Kyle missed his monthly payment.
b.
Kyle split the missing payment into three equal parts.
c.
Kyle did not notify his bank with his intention to split up the missing payment.
d.
Kyle did not add one-third of the missing payment to the next three monthly payments.