A wholesaler contracted in a signed writing to sell to a bakery 10,000 pounds of flour each week for 10 weeks, the flour to be delivered to the bakery on Mondays and payment to be made on Wednesdays of each week. The bakery did all of its weekly bread baking on Tuesdays. On Monday morning of the first week, the wholesaler tendered delivery of 8,000 pounds of flour to the bakery, and the bakery accepted it on the wholesaler's assurance that the remaining 2,000 pounds would be delivered later that evening, which it was. The bakery paid for both deliveries on Wednesday. On Monday of the second week, the wholesaler tendered delivery of 5,000 pounds of flour to the bakery and said that the remaining 5,000 pounds could not be delivered on Monday but would be delivered by Wednesday. The bakery rejected the tender.

Required:
Was the bakery legally justified in rejecting the tender of the 5,000 pounds of flour?

In regards to whether the bakery can legally reject the tender of 5,000 pounds of flour, the answer is B. Yes, because the tender was a substantial impairment of that installment and could not be cured.

The terms of the agreement was 10,000 pounds of flour on Mondays while the wholesaler was asking to send 5,000 pounds on Wednesday.

Clearly this is a substantial breach of contract because the wholesaler both did not supply the required amount and can only rectify this error two days after they are meant to have sent the flour.

The bakery is therefore legally allowed to reject the 5,000 pounds of flour on the basis that the installment/ contract is severely impaired.

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