Asked by Jaylee Field on Jun 15, 2024
Verified
Adrian operates a recycled metals business and contracts to provide ten tons of scrap steel at $500 per ton to be delivered to Build-It-Rite Materials Inc. in seven months. An unforeseen shortage of scrap steel suddenly develops, making it impossible for Adrian to fulfill the contract for less than $5,000 per ton. Adrian's best defense against performing the contract would be that
A) performance of the contract is commercially impracticable.
B) procuring the steel would force the seller into bankruptcy.
C) the law has rendered performance of the contract illegal.
D) the specific subject matter of the contract has been destroyed.
Commercially Impracticable
A doctrine where parties are relieved from their contractual duties when events have occurred making performance excessively difficult or costly.
Unforeseen Shortage
A sudden and unexpected lack of necessary supplies or resources.
Recycled Metals
Metals that have been processed and reformed from previously used materials to reduce waste and environmental impact.
- Understand the effects of unexpected events on contractual commitments.
Verified Answer
JB
Justin BaileyJun 21, 2024
Final Answer :
A
Explanation :
Adrian's best defense is that performance of the contract is commercially impracticable due to the unforeseen shortage of scrap steel, which drastically increased the cost.
Learning Objectives
- Understand the effects of unexpected events on contractual commitments.