Answer :
The scenario given is an example of anticipatory repudiation, where AGI informs Bob's Sports Store before the delivery date that it will not fulfill the contract by delivering the sports equipment. The correct answer to the scenario described in the question is a) anticipatory repudiation
The correct answer to the scenario described in the question is a) anticipatory repudiation. Anticipatory repudiation occurs in contract law when one party informs the other party that they will not fulfill their contractual obligations before the time performance is due. This communication can be in the form of a clear and unequivocal statement or by actions that indicate they will not perform as agreed. In this case, AGI (Athletic Goods, Inc.) informed Bob's Sports Store ahead of performance time that it will not deliver the sports equipment, which constitutes anticipatory repudiation. It is different from b) perfect tender, which refers to the obligation of a seller to deliver goods in conformity with the terms of the contract; c) rejection of performance, which is when the receiving party refuses the performance or delivery; and d) revocation of acceptance, which is when a buyer who has accepted goods later rejects them due to non-conformity discovered.
