Which of the Following Would Most Likely Result in the Court's

question 147

Multiple Choice

Which of the following would most likely result in the court's finding that the contract had been discharged by frustration?

• A) Lowe contracted to purchase a business from Lerner, but the interest rates jumped so quickly that, even before closing, he realized he would lose money, so he told Lerner he couldn't go ahead with it.
• B) Thornburn agreed to buy Patterson's tulip crop, but unknown to both of them, at the time of the contract the crop had been destroyed by frost.
• C) Lee Ltd. agrees to haul lumber for Len Lumberjack, but a few days before the delivery date the company's best truck, the one they wanted to use, broke down.
• D) N. Yung contracts to give a performance at Etobicoke stadium, but the performance was cancelled because Yung was poisoned by contaminated food at a local restaurant.
• E) Mellowcream Ltd. contracted to deliver 40 dozen donuts to Pat's Place, but called Pat and told her it couldn't deliver because another customer needed another 40 dozen for an unexpected event.

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Definitions:

Tax Receipts

The revenue collected by a government from taxes, which can include income, sales, and property taxes among others.

Income

The amount of money or goods and services that one receives in return for providing labor, producing goods, or investing capital.

Transfer Payments

Payments made by the government to individuals for which no good or service is provided in return, such as welfare, unemployment benefits, and social security.

Welfare Benefits

Welfare benefits are financial or service-based assistance provided by the government to support individuals and families in need, aiming to ensure a minimum standard of living.