Use This Fact Situation to Answer the Questions That Follow

Multiple Choice

Use this fact situation to answer the questions that follow. On January 1,A Co.enters into a contract with B Co.to build a stadium.The date of completion of the contract is August 1.On February 2,A Co.faxes to B Co.a letter that states that it is having problems with its steel girder supplier and that if these continue,it may not be able to complete on time,although it will try to find other suppliers if necessary.On February 15,B Co.enters into a contract with C Co.to build the stadium.On March 1,A Co. ,which finally received its shipment of steel girders,attended at the construction site to begin its work only to find C Co.there.In a lawsuit by A Co.against B Co. ,B Co.will argue that

A) by electing to treat the contract as at an end,it was entitled to enter into the contract with C Co.
B) A Co.'s fax of February 2 was an express repudiation of the contract.
C) in light of A Co.'s repudiation,B Co.was entitled to elect to treat the contract as at an end or to affirm the contract.
D) it elected to treat the contract as at an end.
E) all of the above