Legal Question in Business Law in California

The judge will rule that you need to do your own UCC Article 2 homework.

It is difficult to offer a complete answer without looking at the actual contract. What they told you today was not that they could not perform, but that they may not be able to perform. Technically I would say the breach can't occur until April 10th when the performance is due. It is possible that based on their statement you may have a legal right to what is called anticipatory breach. Damages would be any cost greater than the Twizzle contract price. Let's say Twizzle was charging $1 per mug and now you have to pay $1.25, your damage is $1,250. If you paid a deposit to Twizzle you could also claim that as damage. If the contract has a provision for attorney's fees, then that too could be an item of damage. You should meet with an attorney who can review the actual contract and give you specific legal advice.

I agree with Mr. McCormick that this is a homework or exam question. We aren't here to help students cheat. It sometimes happens inadvertently, though, as it did here.

Anticipatory breach would require something more definite than "might" not be able to perform. Now go do your own homework.