Chad contracts with Lauren to deliver 1,000 widgets between the 1st and 5th of each month for twelve months. The contract begins on June 1, 2010.Chad delivers the first six installments in a timely manner, but due to circumstances beyond his control,Chad discovers that he will not be able to deliver the December installment until December 18.Chad notifies Lauren of this on December 2, 2010. Lauren tellsChad that she will refuse to accept delivery of the goods on December 18.LaurentellsChad that if the January shipment is late, she will also refuse those goods. Lauren then contracts withTom to supply 1,000 widgets on December 5, 2010.Chad delivers 1,000 widgets to Lauren on January 3, 2011.

• Does Lauren have to pay for the January 3, 2011 shipment? Explain your answer.