An automobile manufacturer entered into a contract with a we…
An automobile manufacturer entered into a contract with a well-known tire distributor. The contract provided that the distributor would deliver to the automobile manufacturer 1,000 tires on the 15th of each month for $50,000 per shipment, with payment due upon receipt. The automobile manufacturer and the tire distributor properly fulfilled their contractual obligations for two months. The day after the third tire delivery, the tire distributor’s president visited the automobile manufacturer and found the automobiles produced with his company’s tires to be a “disgrace.” To protect the tire distributor’s reputation, the president announced that he will not send any additional tire shipments. The automobile manufacturer immediately brought a breach of contract action against the tire distributor. Which party is likely to prevail in the breach of contract suit?