Dairy Farm enters into a contract with EZ Serve Ice Cream Company to supply milk. Later, Dairy decides that it is no longer advantageous to fulfill the contract and subsequently fails to perform as promised. EZ files a suit against Dairy. A breach of contract occurred when: A) Dairy entered into a contract with EZ.
B) Dairy decided that it was not advantageous to fulfill the contract.
C) Dairy failed to perform the acts promised in the contract.
D) EZ filed a suit against Dairy.

C

Explanation:

A breach of contract occurs when one of the parties to a contract decides not to honor all or some of the terms spelled out in the contract. In other words, a breach of contract occurs when actionable terms in the contract are neglected by one of the parties to the contract.

The actionable term in the contract signed by both Diary Farm and EZ Serve Ice Cream Company is for Diary Farm to supply milk to EZ Serve Ice Cream Company. Hence, not supplying milk as agreed represents a breach of the contract, all other things being equal.

Correct option: C