Dairy Farm enters into a contract with Edible Ice Cream Inc. to supply milk. Later, Dairy decides that it is no longer advantageous to fulfill the contract and subsequently fails to perform as promised. Edible files a suit against Dairy. A breach occurred when Dairy
A) entered into the contract.
B) decided that it was not advantageous to fulfill the contract.
C) failed to perform as promised.
D) was sued by Edible.

Question

Quizplus · Accepted Answer

The breach occurred when Dairy failed to perform as promised, which goes against the terms of the contract. Entering into the contract is not a breach of contract, nor is it when Dairy decided it was not advantageous to fulfill the contract. Being sued by Edible is a consequence of the breach, but not the breach itself.

Dairy Farm Enters into a Contract with Edible Ice Cream