Southeastern Supplies (SS) is a manufacturer and supplier of office equipment. SS contracts to sell University of Florida (UF), a local university, 5,000 UF Gator mousepads at $10 per mousepad for delivery on August 1 and payment of $100,000 due upon delivery. SS gets word from a viable source that UF has had trouble paying its suppliers. If UF repudiates before August 1 (e.g., by failing to assure SS it has the capacity to pay or by failing to pay upon delivery), UF will __________ of the contract.

Question

Quizplus · Accepted Answer

If UF repudiates the contract before August 1, either by failing to assure SS it has the capacity to pay or by failing to pay upon delivery, UF will be in breach of the contract. Repudiation refers to a party's indication that they will not perform their obligations under the contract, which constitutes a breach.

Southeastern Supplies (SS) Is a Manufacturer and Supplier of Office