A manufacturer of paper bags had a contract with a retail grocer to supply the grocer with paper bags on a quarterly basis. The grocer had always complied with the payment terms of the contract, which give the grocer a month after receipt of the paper bags to pay for them. The manufacturer heard a rumor that the grocer had consistently failed during the past several months to timely pay a frozen food company for merchandise delivered to the grocer. The rumor was false, but led the manufacturer, as well as other companies that supplied goods to the grocer, to reasonably question the retailer's ability to pay for their goods.
Forty-five days before the next shipment of paper bags was due, the president of the manufacturer called the grocer and demanded that the grocer provide assurances that it could pay for the paper bags. The grocer did not give the manufacturer assurances before the next shipment of paper bags was due.
If the manufacturer fails to make the next shipment, which of the following provides the grocer with the best argument that the manufacturer is in breach of the contract?
A. The manufacturer cannot demand assurances because the grocer has not breached the contract.
B. The manufacturer has not given the grocer sufficient time in which to provide assurances.
C. The manufacturer's demand for assurances was not in writing.
D. The rumor about the grocer's inability to pay for goods on time was false.