Russell and Joe Make a Contract for Russell to Manufacture

question 6

Multiple Choice

Russell and Joe make a contract for Russell to manufacture five leather chairs of a specified design. Prior to their manufacture, the factory is destroyed in an accidental fire that is no one's fault. If the chairs are available from other sources:

• A) Russell must supply the chairs, even if he must buy them elsewhere.
• B) Russell's duty to deliver the chairs is discharged by the destruction of the factory.
• C) Russell has materially breached the contract if he fails to deliver the chairs.
• D) (a) and (c) are correct.

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Definitions:

Equity And Compensation

Refers to the shares or stock a company may offer to its employees as part of their remuneration package.

Equal Ownership

A situation in which two or more entities have the same proportion of ownership rights in a property, company, or financial asset.

New Layers Of Management

The addition of managerial levels within an organization's structure aimed at addressing complexity and enhancing operational efficiency.

High-Growth Stage

A phase of business development characterized by rapid expansion in revenue and often customer base.