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MMLU / On January 31, a supermarket entered into a written contract with a produce…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

On January 31, a supermarket entered into a written contract with a produce company to purchase oranges. The contract contained a provision wherein the supermarket promised to purchase "as many oranges as required, but at a minimum 100 bushels per month at a price of $20 per bushel for the next year. " The agreement also provided that any modifications must be in writing. On February 1, the produce company shipped the supermarket 70 bushels of oranges, which were accepted and paid for. On March 1, the produce company tendered 80 bushels of oranges, which the supermarket accepted and paid for. On April 1, the produce company delivered 100 bushels of oranges to the supermarket. This shipment was accepted and also was promptly paid for. On April 2, the manager of the supermarket became concerned because a Florida drought had resulted in a sharp increase in the price of oranges. Consequently, the manager consulted the supermarket's attorney, who advised him to demand adequate assurances that the produce company would perform its obligations under the terms of the contract. Heeding the attorney's advice, the manager sent a letter on April 3 to the produce company, expressing his concern and requesting an adequate assurance of due performance for the balance of the contract. This letter was received by the produce company on April 4. Which of the following best states the supermarket's legal rights against the produce company?

choices

  1. Cancel the contract on May 1, cover immediately and then sue for damages.
  2. Wait until the May 1 shipment; if it doesn't comply, demand adequate assurances, and not obtaining them, then sue for damages.
  3. Wait until the end of the contract and then sue for damages.
  4. Wait a reasonable time not to exceed 30 days; if adequate assurances are not received, cancel the contract, cover immediately and then sue for damages.

subject

professional_law

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Source and history

task_id
16b19627-b8c5-566b-9825-397ac6970ed1
task_key
all--test--16b19627-b8c5-566b-9825-397ac6970ed1
task_revision_id
1
config / split
all / test

Official source

initial import