Fact Pattern 16-1 (Questions 18-19 apply)
Internet Cafes, 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 company to Kwik Eateries, Inc. Kwik refuses to assure Java that it will continue Internet's contract.
-Refer to Fact Pattern 16-1.Kwik's refusal constitutes
A) a justified response based on Kwik'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

Kwik's refusal to assure Java that it will continue Internet's contract is a repudiation of the contract. A repudiation occurs when one party indicates, by words or conduct, that they will not perform the contract. In this case, Kwik's refusal to continue the contract after Internet sells its company indicates an unwillingness to perform the contract, which constitutes a repudiation.

Fact Pattern 16-1 (Questions 18-19 Apply)