Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada.The contract was made on April 1 with the trip to begin on June 1.On May 1,Kevin notified Jim that he had changed his mind and would be unable to make the trip.He also refused to pay Jim any compensation.In this case:
A)because the contract is executory, Jim has suffered no damages, and Kevin has no obligation to pay any compensation.
B)Kevin has anticipatorily repudiated the contract and is liable to Jim for damages.
C)Jim may wait until June 1 to see if Kevin will perform his contractual duties and, if he does not, there is a material breach.
D)Both (b) and (c) above are correct.

Question

Quizplus · Accepted Answer

Kevin's notification on May 1 constitutes anticipatory repudiation, making him liable for damages (B). Jim also has the option to wait until June 1 to see if Kevin performs, and if not, it would be a material breach (C).

Jim Contracted with Kevin to Serve as a Guide for Kevin