Acme Corp Entered into a Complex Agreement with Coyote Inc

question 25

Multiple Choice

Acme Corp entered into a complex agreement with Coyote Inc for the design and delivery of various types of widgets. After several months, however, Acme received an offer to perform a similar service for the government under a more lucrative contract. Acme could not possibly perform both agreements. It therefore conducted some research and discovered that another company, Geococcyx Ltd, was able and eager to complete the deal with Coyote. Which of the following statements is TRUE?

• A) Geococcyx can use the legal process of repudiation in order to discharge the contract between Acme and Coyote.
• B) The parties could use the process of novation to allow Geococcyx to assume Acme's role under the original agreement with Coyote.
• C) because of the circumstances, the contract between Acme and Coyote is frustrated
• D) The contract between Acme and Coyote can be described as "fully executed."
• E) because of the circumstances, Acme likely has the right to use the process of waiver to escape its contract with Coyote

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Definitions:

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