Contracted with italian clothing manufacturer

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A United States clothing retailer (US) contracted with an Italian clothing manufacturer (IT) to custom make jogging suits for the holiday season. The contract called for delivery no later than October 31. One day during late September US gets a call from a fabric company (FC) who informs US that they will not supply IT with the fabric it needs to make the jogging suits unless US agrees to pay FC directly instead of IT because IT has not been making payments on past contracts it made with FC. US calls IT to find out what's going on and IT tells US to ignore the call and that all of the jogging suits will be delivered on time...."no problem".

1) Has IT technically breached its contract with US?

2) If IT has not yet breached the contract, under the UCC is there anything US can do immediately to protect itself?

Reference no: EM132180984

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