Fact Pattern 19-1 Daily Bread Bakeries, Inc., contracts to buy all of its ingredient requirements for bread making, at a certain minimum per year, from Enriched Flour & Grain Corporation for six years. After three years, Daily Bread tells Enriched that it plans to sell its assets to Flat Bread Shops, Inc. Flat Bread refuses to assure Enriched that it will continue Daily Bread's contract.
Refer to Fact Pattern 19-1. Flat Bread's refusal is
A) a breach of the original contract between Enriched Flour and Daily Bread.
B) an assignment of Daily Bread's rights under the contract.
C) a reasonable suspension of performance under the contract.
D) a repudiation of the contract.

Question

Quizplus · Accepted Answer

Flat Bread's refusal to assure Enriched that it will continue Daily Bread's contract is considered a repudiation of the contract, as it indicates an unwillingness to fulfill the contractual obligations.