Alison advised the sales manager at SpudsRUs Ltd.that she had rejected the shipment of potatoes received from Spuds that morning.As this was the second consecutive shipment from Spuds contaminated with blight,Alison also advised Spuds she was cancelling the contract.Which of the following would Alison's lawyer most likely indicate as the source of her ability to act in this manner?

Question

Quizplus · Accepted Answer

Alison's ability to cancel the contract and reject the shipment is most likely based on her right of repudiation, which allows a party to terminate a contract if the other party has committed a fundamental breach. The repeated contamination of the potatoes could be considered a fundamental breach. Breach of innominate terms and breach of warranty may also provide grounds for termination or damages, but they do not necessarily give the party the right to repudiate the contract. The doctrine of caveat emptor (buyer beware) generally places the burden on the buyer to inspect goods before purchase and does not apply in this situation where the goods were already received and found to be contaminated.

Alison Advised the Sales Manager at SpudsRUs Ltd