Mansfield Dairies entered into a contract with Aratez Inc., a dairy product food processing company, to provide dairy products for a period of four years. The contract included a provision for a one-year limitation period in case of breach. But with less than a year left on the contract, Mansfield Dairies stopped shipment of milk products to Aratez Inc. Under the UCC statute of limitations, which of the following would be true with reference to Aratez's right to bring a lawsuit against Mansfield Dairies for breach of contract?
A) The lawsuit could be filed anytime within one year from the breach.
B) The lawsuit could only be filed after the expiration of the contract.
C) The lawsuit could not be filed as there was less than a year left to complete the contract.
D) The lawsuit could be filed any time within four years from the breach.

Question

Quizplus · Accepted Answer

The contract included a provision for a one-year limitation period in case of breach, which means that Aratez Inc. has the right to bring a lawsuit against Mansfield Dairies for breach of contract within one year from the breach, even if less than a year is left on the contract. Therefore, option A is the correct answer.

Mansfield Dairies Entered into a Contract with Aratez Inc