​Contractors LLC Agrees to Build a Store for Discount Retail

question 67

Multiple Choice

​Contractors LLC agrees to build a store for Discount Retail, Inc., at a specific location. Before construction begins, the local zoning law is changed to prohibit commercial buildings at that location. In this situation

• A) ​Contractors is in breach of contract.
• B) ​the local zoning authority is in breach of contract.
• C) ​the contract is discharged.
• D) ​Discount must compensate Contractors for its lost profit.

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Definitions:

Novation

The act of replacing an existing contract with a new one, where a different party assumes the rights and obligations of the original party.

Accord

An agreement in contract law where one party agrees to accept something different (often less) than what was initially agreed upon as satisfactory performance.

Satisfaction

The fulfilment of a requirement, obligation, or the to fulfillment of a condition stipulated in a contract.

Deviated Specifications

Instances where the actual specifications of a product or service differ from the initially agreed or standard specifications.