Blades Orders Four Tractors from AGRI

Multiple Choice

Blades orders four tractors from AGRI. They agree that AGRI will deliver one tractor to Blades each month by the end of the month starting in June. Blades owns a dealership and has already sold one of these tractors on to Cauliflower Co, delivery by 15 July. On 10 June, AGRI informs Blades that because of a strike it will not be able to deliver the first tractor on time and all subsequent deliveries will be delayed. Although Blades must have the tractor before the middle of July, it decides to wait and see whether AGRI will complete the job by then. AGRI is able to get extra workers and manages to finish the first tractor by 5 July. When Blades tries it out, the engine starts to smoke. Blades decides to remedy this by adding more cooling fluid to the motor. Cauliflower comes to pick up the tractors ten days later. On 30 July, the defective tractor short-circuits and catches fire. Cauliflower successfully terminates its contract with Blades and claims damages. Blades notifies AGRI that it is terminating its contract and withholding payment for the defective tractor and the three remaining tractors. Which of the following statements is true?

A) Blades can terminate the contract for AGRI's anticipatory breach through renunciation on 10 June.
B) Blades can terminate the contract for AGRI's failure to deliver a sound tractor on 5 July.
C) Blades can terminate the contract for AGRI's failure to deliver a sound tractor on 30 July.
D) AGRI can terminate the contract and sue for his loss of profits for all four tractors for Blades' failure to pay for the defective tractor and accept delivery for the remaining tractors