Pavers Inc. contracts to buy some heavy equipment from Earthmovers, Inc. Before either party performs, Earthmovers sells its assets to Excavation Corporation. On learning of the sale, Pavers is concerned about its contract with Earthmovers. Pavers should:

Respuesta :

Answer:

Pavers should demand some assurance of performance from the seller.

If Excavation only bought Earthmovers assets and not the whole company, then Pavers should request Earthmovers to give assurance of performance.

The problem that Pavers faces is that when companies only sell their assets and not the whole company, they usually do it because their liabilities are too high and it's not certain that they will keep operating. That way the buyer (Excavation) gets the assets and the seller (Earthmovers) the liabilities.