Fact Pattern 12-1
Daily Bread Bakeries, Inc., contracts to buy all of its ingredient requirements forbread 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 12-1.Flat Bread's refusal is

Question

Quizplus · Accepted Answer

Flat Bread's refusal to assure Enriched that it will continue Daily Bread's contract amounts to a repudiation of the contract. By refusing to continue the contract, Flat Bread is indicating that it has no intention of performing its obligations under the contract. This gives Enriched the right to consider the contract as breached and seek damages.

Fact Pattern 12-1 Daily Bread Bakeries, Inc., Contracts to Buy All of Its