Cynthia orders 100 shirts in a variety of colors for her screenprinting business from Juan, a shirt supplier. Before Juan ships the shirts, he discovers through conversations with other shirt suppliers that Cynthia is insolvent and is unlikely to pay for the shirts upon their delivery.

What remedy does Juan have in this scenario?

• Juan has no recourse in this scenario, since Cynthia is insolvent.
• Juan has 10 days to determine whether or not Cynthia is actually insolvent, at which point he must ship the shirts or cancel the contract.
• Juan must ship the shirts regardless; otherwise, he will be in breach of contract.
• Juan may refuse to deliver the shirts unless Cynthia pays in cash ahead of delivery.