Fact Pattern 181 Daily Bread Bakeries Inc contracts to buy a

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. Flat Bread’s refusal is a a justified response based on Flat Bread’s relation to the contract. b an assignment of Daily Bread’s rights under the contract. c a reasonable suspension of performance under the contract. d a repudiation of the contract.

Solution

Flat Bread’s refusal is a reasonable suspension of performance under the contract .

This means Answer (c) is correct as now the Flat Bread’s is selling its assets to the Enriched , So now the he has not business so he is unable to complete the performance of the contract and the reason behind it is a reasonable.