Loomis Weaving Company contracts to sell sweaters to Style Mart stores.Before the sweat-ers are delivered,Style Mart indicates that it will not be able to pay.Loomis can resell the goods
A)either after finishing the job (and identifying the goods),or after stopping the job.
B)only after finishing the job and identifying the goods.
C)only if Loomis immediately stops the job.
D)under no circumstances.

Question

Quizplus · Accepted Answer

According to the doctrine of anticipatory repudiation, when one party clearly and unequivocally indicates that they will not perform their contractual obligations, the other party can consider the contract breached and has the right to stop performance and seek remedies. In this case, Style Mart has indicated that it will not be able to pay, which constitutes anticipatory repudiation. Therefore, Loomis can either stop the job and seek remedies, or finish the job and resell the goods to recover their losses. Therefore, option A is the best choice, as it allows for both options.

Loomis Weaving Company Contracts to Sell Sweaters to Style Mart