Question

Silas Paving Co. contracts to buy some construction machinery from Massive Earthmovers, Inc. Before either party performs, Massive sells its assets to Phoenix Equipment Corp. On learning of the sale, Silas is concerned about its contract with Massive. Silas should
a. demand assurances of performance from Massive.
b. consider the contract repudiated and sue Massive for breach.
c. buy the machinery from a different supplier and bill Massive for the price.
d. buy the machinery from a different supplier and bill Phoenix for the price.

Answer 1

Answer:

a. demand assurances of performance from Massive.

Explanation:

When Silas Paving Co finds out about the sale of Massive Earthmovers assets to Phoenix Equipment corp, it should find out from Massive if there is still assurance of performance on their contract. If assurance is given by Massive that the contract still holds then Silas Paving Co does not need to worry.

If however there is no assurance from Massive then Silas will be able to take action against Massive for breach of contract.