Johnny Rents Equipment from Doe at a Rate of $500

question 35

Multiple Choice

Johnny rents equipment from Doe at a rate of $500 per month.The term of the contract is 2 years.Six months into the term, the equipment is destroyed in a lightning strike, and Johnny has to rent new equipment from another supplier.Is Johnny entitled to recover the six payments he has already paid to Doe?

• A)No, because the contract with Doe has been frustrated and payments made before the frustrating event cannot be recovered.
• B)Yes, because the contract with Doe has been frustrated and a frustrated contract is void ab initio.
• C)No, because the contract with Doe has been breached by Johnny's failure to keep the equipment safe and Doe is therefore entitled to keep the payments.
• D)Yes, because the contract with Doe has been breached by Doe's failure to provide equipment for the full two years and therefore Doe must pay Johnny damages.

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Definitions:

HRM Policies

Encompasses the formal guidelines and standardized procedures that dictate how various HR issues are handled within an organization.

HR Metrics

Quantitative measurements used to track and assess the efficiency and effectiveness of human resource practices within an organization.

Development Hurdle

Challenges or obstacles that must be overcome during the process of developing a new product, service, or project.

Mimicry

The action or art of imitating someone or something, often used as a survival strategy in the natural world.