This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
The fact that A has reasonable cause to believe, and does believe, that B will be unable to perform his part of the contract, does not of itself dscharge A from performng his part.1 Thus a contract to build a boat is not discharged by the contractor's making a general assignment for the benefit of creditors. Neither is such assignment a breach. Accordingly, if the party for whom the boat is to be built takes possession of it before the time within which it was to be completed, this is a breach on his part and he cannot have damages for non-performance.2 So the fact that A doubts B's solvency does not justify A's breaking the contract.3
 
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