Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 22

Pizza of Gaithersburg and The Pizza Shops (Pizza Shops) contracted with Virginia Coffee Service (Virginia) to install vending machines in each of their restaurants. One year later, the Macke Company (a provider of vending machines) purchased Virginia's assets, and the vending machine contracts were assigned to Macke. Pizza Shops had dealt with Macke before but had chosen Virginia because they preferred the way it conducted its business. When Pizza Shops attempted to terminate their contracts for vending services, Macke brought suit for damages for breach of contract.
a. What arguments would support Pizza Shop's termination of the contracts?
b. What arguments would support Macke's suit for breach of contract?
c. Which side should prevail? Explain.