Which of the Following Would Most Likely Result in the Court

question 66

Multiple Choice

Which of the following would most likely result in the court finding the contract had been discharged by frustration?

• A) Cooper contracts to deliver ten bushels of ripe tomatoes to Haig's restaurant, but Cooper's tomato crop is destroyed by hail a few days before the delivery date.
• B) McGee contracts to give a lecture at a convention on modern marketing, but the convention is cancelled because of an epidemic.
• C) Moore, a sculptor, was delivering a $15,000 work when he lost control of the car and the work was crushed. He had been drinking heavily and had not bothered to wrap or box the work.
• D) Binks agreed to purchase a business from Kealy, but Binks suffered such great losses in the recent stock market crash that he couldn't afford to go through with it.
• E) McDonald agreed to buy Thornburn's horse, but unknown to both of them, at the time the contract was made the horse was dead.

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Definitions:

Semiannually

Occurring twice a year or every six months.

Interest Payments

The amount of money paid regularly (typically annually or semiannually) for the use of borrowed funds.

Callable Bonds

Bonds that can be redeemed by the issuer prior to their maturity date at a specified call price.

Redeemable

Refers to an item or financial instrument that can be converted into cash or another financial instrument.