Alison advised the sales manager at SpudsRUs Ltd.that she had rejected the shipment of potatoes received from Spuds that morning.As this was the second consecutive shipment from Spuds contaminated with blight,Alison also advised Spuds she was cancelling the contract.Why is Alison able to do so?

Question

Quizplus · Accepted Answer

Alison is able to cancel the contract because of the right of repudiation, which allows a party to terminate the contract when the other party has fundamentally breached the contract terms. In this case, delivering contaminated potatoes repeatedly can be considered a fundamental breach, justifying the cancellation of the contract.

Alison Advised the Sales Manager at SpudsRUs Ltd