Trendy Imports Entered into a Contract on June 1^st with Neat

question 23

Multiple Choice

Trendy Imports entered into a contract on June 1^st with Neat Things, a small upscale gift shop, to supply it with 100 tooled leather boxes. Delivery was to be made on September 15^th so that the boxes could be on display in the store by October 15^th, ready for the pre-Christmas rush. On August 6^th, Trendy notified Neat Things that a dock strike in Italy was holding up the shipment and, if the boat on which they were loaded could not leave port within a very few days, Trendy would not be able to make the delivery on September 15^th. Suppose Neat Things does nothing immediately, the boat sails and the delivery would have been made on time, but the boat sinks in a hurricane on August 23^rd.

• A) There is nothing Neat Things can now do since the contract is frustrated by the sinking of the ship.
• B) Neat Things can sue Trendy because of its anticipatory breach on August 6^th.
• C) There is nothing Neat Things can now do. It could have sued when the boat sank, if the delivery could not have been made on time even if the boat had not sunk, since the sinking of the boat would not then have been relevant to the breach of contract.
• D) Trendy will lose if Neat Things sues now because, as of August 23^rd, it is in breach of its contract with Neat Things.
• E) Neat Things still retains the right to wait until September 15^th and sue if Trendy does not perform its part of the contract.

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Definitions:

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Istanbul

A major city in Turkey that straddles Europe and Asia across the Bosphorus Strait and has a long history, including serving as the capital of the Roman, Byzantine, and Ottoman Empires.

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