T.T. Inc. creates and sells hats. The Local Ironworkers 452 have contracted with T.T. Inc to purchase 150,000 hats for $15,000 with a delivery date of July 1. Local Ironworkers 452 paid a $5,000 deposit upon signing the contract, with the remaining $10,000 balance due when the hats are delivered. In the contract, Local Ironworkers 452 specified that "time is of the essence due to a local union campaign." Local Ironworkers 452 has reason to believe from another local chapter that there was an issue in the hats arriving a day after an important rally. What is/are Local Ironworkers 452's option(s)?

Question

Quizplus · Accepted Answer

Given the specific mention that "time is of the essence" in the contract, Local Ironworkers 452 can request written assurances from T.T. Inc. to confirm that the hats will be delivered on time. This is in line with the Uniform Commercial Code (UCC) which allows a party to a contract to request adequate assurance of performance when reasonable grounds for insecurity arise regarding the other party's performance.

TT Inc Creates and Sells Hats