Which of the Following Contracts Has Been Frustrated

question 7

Multiple Choice

Which of the following contracts has been frustrated?

• A) Dreamhomes Co is planning to construct 40 semi-detached homes. After a public offer has been made and all prospective units have been sold but not allocated, the City Council only gives permission to build 36. The four purchasers left out in the cold after allocation of the homes claim damages. Dreamhomes claims that those contracts have been frustrated.
• B) Flytech Industries Co has been contracted by Libyan National Airways to construct a passenger jet for immediate use. Libyan Airways plans to use the passenger jet for a new route between Tripoli and Rome. As construction nears completion, Libyan Airways is told by the authorities at Da Vinci Airport in Rome that it will not be issued landing rights at the airport.
• C) United Tankers Co operates two tankers for the shipment of oil from the Middle East, the Monaco and the Lichtenstein. United Petroleum contracted with United Tankers for the shipment of oil from Qatar to Portsmouth in April. Internally, United Tankers allocates the Lichtenstein for this job. In February, the Lichtenstein is attacked by terrorists and sunk off the coast of Yemen. The Monaco is occupied with another job. United Petroleum sues for damages. United Tankers claims frustration.
• D) None of the options given is correct.

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Definitions:

Crisis Management

The method an organization employs to handle a sudden and unforeseen incident that poses a risk to the organization and its stakeholders.

Critical Decisions

Significant choices or judgments that have a major impact on the direction and success of an organization or individual.

Inadequate Information

A scenario where there is insufficient or incomplete information available to make informed decisions or understand a situation fully.

Crisis Situations

Scenarios that threaten significant harm or disruption, necessitating urgent and effective responses to mitigate impact.