Fred's Fireplaces enters into a contract with Miguel's Patio Supply in which Miguel's agrees to purchase 20 fireplaces. Miguel fails to pay and Fred's Fireplaces cancels the contract. Fred's does not notify Miguel. Did Fred's Fireplaces act appropriately?
A) No because cancelling a contract is never appropriate.
B) No because filing a lawsuit is required before cancelling a contract.
C) No because a contract can be cancelled in the event of breach only if the contract is for at least 50 units of goods.
D) No, because the UCC requires sellers to notify buyers of a cancellation if the seller cancels the contract due to a breach.
E) Yes, because a seller always has a right to cancel a contract before performance is due.

Question

Quizplus · Accepted Answer

The Uniform Commercial Code (UCC) requires sellers to notify buyers when they cancel a contract due to a breach. This ensures that the buyer is aware of the cancellation and can take appropriate action.

Fred's Fireplaces Enters into a Contract with Miguel's Patio Supply