PC Corp. entered into a contract with KPL University (KPLU) to supply 500 PCs for use in KPLU's new computer facility. A week before the PCs were to be delivered, KPLU indicated that it would not go through with the purchase. PC Corp. immediately stopped assembling the computers for KPLU and sold the already assembled computers to another buyer. Three days later, KPLU decided to go through with the purchase and asked PC Corp. to deliver the 500 PCs on the delivery date as agreed in the contract. Is PC Corp. obligated to deliver the PCs as required by the contract? Why or why not?
What will be an ideal response?
No, PC Corp. is not obligated to deliver the PCs because KPL University (KPLU) repudiated its contract by indicating that it would not go through with the purchase. PC Corp. has the right to anticipatory repudiation and suspend its performance under the contract. Also, since KPLU indicated that it wanted to withdraw its repudiation after PC Corp. sold the computers to another buyer, KPLU cannot force PC Corp. to perform its contractual obligations.
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