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.Java 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 Java is fully paid.
D)do nothing.

Question

Quizplus · Accepted Answer

Java can terminate the contract and seek damages because Bagel Bistros has refused to assure them that they will continue the contract after Internet Cafés sells its assets. The contract was made between Internet Cafés and Java, and Bagel Bistros has no obligation to continue the contract. Therefore, Java can terminate the contract and seek damages for breach.

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