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

question 75

Multiple Choice

On 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 in Smithers on March 5 for $7600.On February 22,Dupont called Smyth and said he wasn't going to sell it; he decided to keep it.Based 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.

---

Definitions:

Finished Goods Inventory

The completed products that are ready to be sold but have not yet been sold to customers.

Raw Materials Purchases

The acquisition of the basic materials and components needed for the production of goods.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Cash Collections

The process of gathering all cash receipts and payments, including those from customers and operational activities, within a particular period.