Fact Pattern 21-A1 (Questions A9-A10 apply)
Internet Cafés,Inc.,contracts to buy all of its requirements for coffee,at a minimum of 1 million pounds per year,from Java Corporation for six years.After three years,Internet tells Java that it plans to sell its assets to Bagel Bistros,Inc.Bagel Bistros refuses to assure Java that it will continue Internet's contract.
-Refer to Fact Pattern 21-A1.Bagel Bistros's refusal is
A)a justified response based on Bagel Bistros's relation to the contract.
B)an assignment of Internet's rights under the contract.
C)a reasonable suspension of performance under the contract.
D)a repudiation of the contract.

Question

Quizplus · Accepted Answer

Bagel Bistros's refusal to assure Java that it will continue the contract with Internet constitutes a repudiation of the contract. This is because Bagel Bistros has refused to perform a duty that it would have been required to perform under the contract, and this refusal indicates a lack of intention to perform the contract as agreed. As a result, Java can treat the repudiation as a breach of contract and seek damages.

Fact Pattern 21-A1 (Questions A9-A10 Apply)