Fact Pattern 14-1 Daily Bread Bakeries, Inc., Contracts to Buy All of Its

question 20

Multiple Choice

Fact Pattern 14-1
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 14-1.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.

Grasp the concept of agency coupled with interest and its implications on agency termination.

Understand the duties of a principal towards the agent, including reimbursement.

Analyze the impact of external factors (e.g., bankruptcy, war, incapacitation) on the termination of agency relationships.

Understand the concept of apparent authority and its termination.

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