Dairy Farm enters into a contract with EZ 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. EZ 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 EZ.

Question

Quizplus · Accepted Answer

C) Dairy Farm's failure to perform as promised constitutes a breach of contract. The breach occurs when one party fails to fulfill their contractual obligations, not at the decision-making or litigation stages.

Dairy Farm Enters into a Contract with EZ Ice Cream