On the February 1, Smyth Contracted to Buy Dupont's Van

question 117

Multiple Choice

On the February 1, Smyth contracted to buy Dupont's van. They had agreed that Smyth would pay the price of $7000 on March 1 and take delivery and the risk on that date. Smyth then contracted to sell the van to Smithers on March 5 for $7600. On February 22, Dupont called Smyth and said he wasn't going to sell because he had decided to keep the van. On these facts, which of the following is False?

• A) Dupont's call is an express repudiation of the contract and is an anticipatory breach.
• B) Smyth could agree to call off the contract; neither of them had yet performed.
• C) Smyth could refuse to acknowledge a breach, but that would result in the possibility that the contract could be breached later.
• D) Smyth could acknowledge that Dupont was in breach but has to wait until after the performance date to sue him for breach of contract.
• E) Smyth could refuse to acknowledge a breach and press Dupont to complete the contact.

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Definitions:

Disrupt-then-reframe Technique

A persuasive strategy involving the initial disruption of normal thought processes followed by offering a new frame or perspective that makes the initial proposition more acceptable.

Pique Technique

Influence technique in which one captures people’s attention, as by making a novel request.

Foot-in-the-door Technique

A persuasion strategy where one starts with a small request to increase the likelihood of agreement to a larger request later.

Low-ball Technique

A persuasion strategy where an initially favorable deal is changed to less favorable terms after agreement.