Goto Supplies Ltd.has determined that,because of increased production costs,it will actually lose money if it fulfills its contract to supply parts to Nova Manufacturing Inc.and is considering breaching the contract.What term used to describe the type of contract breach Goto is contemplating?
A) economic repudiation
B) reputation management
C) economic breach
D) specific performance

Question

Quizplus · Accepted Answer

An economic breach occurs when a party decides to breach a contract because the cost of performance outweighs the benefits, making it economically disadvantageous to fulfill the contract.