An oil refiner in the United States contracts on April 1 with a broker to buy crude oil from a specific foreign country with delivery to be made on July 15.On June 15,civil war breaks out in the nation that is the source of the oil,disrupting most exports.The oil refiner immediately writes to the broker demanding assurance of performance,and gets no reply.In this situation,which of the following is true?

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Quizplus · Accepted Answer

In this situation, the oil refiner can suspend its performance and consider the contract to be repudiated. The civil war in the nation that is the source of the oil has disrupted most exports, which means that the broker will not be able to deliver the crude oil as previously agreed. The fact that the broker did not reply to the oil refiner's demand for assurance of performance indicates that the broker may not be in a position to fulfill the contract. Therefore, the oil refiner can suspend its performance without waiting until July 15.

An Oil Refiner in the United States Contracts on April