Pavers Inc. contracts to buy some heavy equipment from Earthmovers, Inc. Before either party performs, Earthmovers sells its assets to Excavation Corporation. On learning of the sale, Pavers is concerned about its contract with Earthmovers. Pavers should

Question

Pavers Inc. contracts to buy some heavy equipment from Earthmovers, Inc. Before either party performs, Earthmovers sells its assets to Excavation Corporation. On learning of the sale, Pavers is concerned about its contract with Earthmovers. Pavers should​

Quizplus · Accepted Answer

Pavers should demand assurances of performance from the seller, which in this case is Excavation Corporation. The sale of Earthmovers' assets to Excavation does not necessarily void the contract between Pavers and Earthmovers. Pavers should require Excavation to either honor the contract or compensate for any breach.