Question

In the past six months, Supplier has made late deliveries to many customers and a good portion of the goods delivered have been defective. Buyer is worried that an important scheduled delivery will be late or nonconforming. Buyer sends a written request to Supplier asking for confirmation that the contract terms will be met. If Supplier does not respond to Buyer's written request within ______, Buyer is entitled to assume that Supplier has repudiated the contract and may purchase the goods from another seller.
a. ten days
b. thirty days
c. three months
d. six months

Answer 1

Answer:

The correct answer is letter "B": thirty days.

Explanation:

Anticipatory Breach or Repudiation is the notification one party in a contract lets the other party know that the obligations stipulated in the initial agreement will not be met.  

According to the rules if the Uniform Commercial Code (UCC), if one of the parties has good enough reasons to believe that the other party is not going to fulfill its obligations in a contract, that party can request an "adequate assurance of performance". If the request is not answered after 30 days, the requesting party can assume the counterparty has repudiated the contract, thus, the requesting party can look for another provider to make a new agreement.