Bottling Company enters into a contract with Chug's Brewery to provide certain bottling and delivery services. Before Bottling starts to work, the market price rises for the fuel for glass ovens. Bottling tells Chug's that due to the added cost it will not perform their deal. Bottling's contractual obligation to Chug's is
A)breached.
B)discharged.
C)rescinded.
D)suspended.

Question

Quizplus · Accepted Answer

Bottling Company's refusal to perform the deal due to the rise in fuel prices for glass ovens constitutes a breach of contract. Changes in cost do not typically allow a party to unilaterally withdraw from a binding agreement.

Bottling Company Enters into a Contract with Chug's Brewery to Provide