Silas Paving Co.contracts to buy some construction machinery from Massive Earthmovers,Inc.Before either party performs,Massive sells its assets to Phoenix Equipment Corp.On learning of the sale,Silas is concerned about its contract with Massive.Silas should
A)demand assurances of performance from Massive.
B)consider the contract repudiated and sue Massive for breach.
C)buy the machinery from a different supplier and bill Massive for the price.
D)buy the machinery from a different supplier and bill Phoenix for the price.

Question

Quizplus · Accepted Answer

Silas should demand assurances of performance from Massive. Since there has been no performance by either party, the contract is still in force. Asking for assurances from Massive will help Silas determine if Massive is still willing and able to perform the contract. Silas can then decide whether to proceed with the contract or look for alternative suppliers.