Fred's Fireplaces Enters into a Contract with Miguel's Patio Supply

question 67

Multiple Choice

Fred's Fireplaces enters into a contract with Miguel's Patio Supply in which Miguel's agrees to purchase 20 fireplaces.Miguel fails to pay and Fred's Fireplaces cancels the contract.Fred's does not notify Miguel.Did Fred's Fireplaces act appropriately?

• A)No,because the UCC requires sellers to notify buyers of a cancellation if the seller cancels the contract due to a breach.
• B)Yes,because a seller always has a right to cancel a contract before performance is due.
• C)No because cancelling a contract is never appropriate.
• D)No because a contract can be cancelled in the event of breach only if the contract is for at least 50 units of goods.
• E)No because filing a lawsuit is required before cancelling a contract.

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Definitions:

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