Fact Pattern 20-1Daily Bread Bakeries, Inc., contracts to buy all of its ingredient requirements for bread making, at a certain minimum per year, from Enriched Flour & Grain Corporation for six years. After three years, Daily Bread tells Enriched that it plans to sell its assets to Flat Bread Shops, Inc. Flat Bread refuses to assure Enriched that it will continue Daily Bread's contract.
-Refer to Fact Pattern 20-1.Enriched can

Question

Quizplus · Accepted Answer

Enriched can terminate the contract and seek damages because Daily Bread has breached the contract by informing Enriched of its intent to sell its assets and indicating that it will not be able to fulfill its obligations under the contract. Enriched may be entitled to damages for the amount it would have received over the remaining three years of the contract.