A wholesaler of coffee notifies a retailer that it cannot fulfill its contractual obligation to deliver 1,000 pounds of coffee at the agreed upon price of $2.00 per pound next month because of recent price increases in coffee.The retailer may treat the wholesaler as having breached the contract and sue for damages even though the wholesaler's performance is not due until next month.

Question

Quizplus · Accepted Answer

The wholesaler's notification of inability to fulfill the contract is considered a breach of contract, even if the performance is not due until next month. The retailer can either sue for damages or seek specific performance (forcing the wholesaler to fulfill the contract).

A Wholesaler of Coffee Notifies a Retailer That It Cannot