Fact Pattern 18-1
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 18-1. Enriched can
A) assign its rights under the contract but cannot terminate it.
B) terminate the contract and seek damages.
C) suspend performance under the contract until Enriched is fully paid.
D) do nothing.

Question

Fact Pattern 18-1
​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 18-1. Enriched can
A) ​assign its rights under the contract but cannot terminate it.
B) ​terminate the contract and seek damages.
C) ​suspend performance under the contract until Enriched is fully paid.
D) ​do nothing.

Quizplus · Accepted Answer

Enriched can terminate the contract and seek damages because Daily Bread has breached the contract by indicating its intent to sell its assets to Flat Bread without assurance of continued performance of the contract by Flat Bread.

Fact Pattern 18-1 ​Daily Bread Bakeries, Inc., Contracts to Buy All of Its

Fact Pattern 18-1 Daily Bread Bakeries, Inc., Contracts to Buy All of Its