Fact Pattern 19-1 Daily Bread Bakeries, Inc

question 17

Multiple Choice

Fact Pattern 19-1 Daily 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 19-1. Enriched Flour can  pursue the following relief

• A) assign its rights under the contract but cannot terminate it.
• B) terminate the contract and seek damages.
• C) suspend performance under the contract until Enriched is fully paid.
• D) None of these answers is correct.

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Definitions:

Psychological Contract

An unwritten agreement between an employer and an employee that outlines mutual expectations, obligations, and perceptions.

Inducements

Incentives or rewards offered to motivate or encourage specific actions or behaviors.

Contributions

The act of giving or adding something to a common pool, or an individual’s involvement or role in bringing about a result.

Employment Relationship

The formal or informal arrangement between an employer and an employee that specifies the terms of employment, including responsibilities, work hours, and compensation.