Jim Contracted with Kevin to Serve as a Guide for Kevin

question 47

Multiple Choice

Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada. The contract was made on April 1 with the trip to begin on June 1. On May 1, Kevin notified Jim that he had changed his mind and would be unable to make the trip. He also refused to pay Jim any compensation. In this case:

• A) because the contract is executory, Jim has suffered no damages, and Kevin has no obligation to pay any compensation.
• B) Kevin has anticipatorily repudiated the contract and is immediately liable to Jim for damages.
• C) Jim must wait until June 1 to see if Kevin will perform his contractual duties and, if he does not, then Jim may sue Kevin for damages.
• D) Jim must try to find "cover" to replace the breached contract, and if he is not able to do so before June 1, then Kevin is liable to Jim for damages.

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Definitions:

Jewelry Manufacturer

A business or enterprise that specializes in the production and fabrication of jewelry articles using various materials, techniques, and designs.

Just-In-Time (JIT) System

Broad management philosophy that reaches beyond the narrow activity of inventory control to influence the entire system of production and operations management.

Perpetual Inventory System

System that continuously monitors the amount and location of a company’s stocks.

Vendor-Managed Inventory

Process in which the producer and the retailer agree that the producer (or the wholesaler) will determine how much of a product a buyer needs and will automatically ship new supplies when needed.