Fact Pattern 22-1​ Daily Bread Bakeries, Inc., Contracts to Buy All of Its

question 24

Multiple Choice

Fact Pattern 22-1​
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 22-1. Enriched can​

• 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) ​do nothing.

---

Definitions:

Commissioning

The process of verifying and bringing newly installed equipment, systems, or facilities into operational condition.

Annealing Furnaces

High-temperature ovens used in manufacturing to heat materials like metals, allowing them to cool slowly in order to reduce hardness, increase ductility, and relieve internal stresses.