Question

Stephens Co. and Boyd's Inc. contract in writing for Boyd's to buy from Stephens 100 cases of sterile gauze pads a month for twelve months. The contract states, among other things, "Either party may end this Agreement by giving written notice to the other party at least ten calendar days before the date on which the notice is to take effect." On June 16, Boyd's hand delivers a written notice to Stephens, saying only this: "We are putting an end to our contract pursuant to the provision therein. This notice is to take effect as soon as possible under the applicable clause of the contract."

A. The contract will be terminated before the end of June.
B. The contract will be cancelled before the end of June.
C. The contract is terminated immediately when Stephens receives the notice.
D. The contract is cancelled immediately when Stephens receives the notice

Answer 1

The contract will be terminated before the end of June.

Step-by-step explanation:

The correct answer is A. The contract will be terminated before the end of June. According to the contract, either party can end the agreement by giving written notice to the other party at least ten calendar days before the desired termination date. In this case, Boyd's hand delivered a written notice to Stephens on June 16, stating that they are ending the contract and the notice is to take effect as soon as possible. Since at least ten days must be given, the contract will be terminated before the end of June.

Answer 2

The contract provides for termination upon a written notice given at least ten days in advance. Boyd's notice on June 16 allows for termination to take effect by June 26, affirming the contract will be terminated before the end of June.

This correct answer is A.

Step-by-step explanation:

The subject of this question pertains to contract law, specifically, the termination clause of a contract.

According to the given contract term "Either party may end this Agreement by giving written notice to the other party at least ten calendar days before the date on which the notice is to take effect."

When Boyd's Inc. sends out the termination notice on June 16, the earliest this termination can take effect is ten calendar days later, which would be June 26.

Since June has 30 days, the contract will indeed terminate before the end of June, making option A the correct answer: The contract will be terminated before the end of June.

This correct answer is A.