Erin contracts in writing to sell her Ford-brand pick-up truck to Garth for $10,500. Erin agrees to deliver the truck on Friday, and Garth promises to pay the $10,500 on the following Monday. On Thursday, Garth tells Erin that he changed his mind and
will not buy the truck. Over the weekend, Garth changes his mind again and tenders $10,500 to Erin on Monday. Erin has not sold the truck to another party but refuses the tender and refuses to deliver. Garth claims that Erin has breached their contract. Erin contends that Garth's repudiation released her from her duty to perform under the contract. Who is correct, and why?
Garth is correct. Erin's refusal to deliver the truck to Garth on Monday, when Garth tenders the $10,500 to Erin, constitutes a breach of their con¬tract. Erin could have canceled the contract on Garth's anticipatory breach [UCC 2–610] but did not do so and did not change her position in any way as a result of Garth's antici¬patory breach. Garth could retract his repu¬diation of the contract at any time before the time performance was due [UCC 2–611]. Because Garth did retract his repu¬dia¬tion and decided to buy the truck at the time performance was due (and not later), Erin was obligated to abide by the terms of the contract.
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