In All but One of the Following Situations, the Contract

question 146

Multiple Choice

In all but one of the following situations, the contract is frustrated. Identify the exception.

• A) Jack contracts with Bill to build a barn on his one-acre lot, but before the permit is obtained, a new law prohibits barns on lots smaller than three acres.
• B) Rudolph is due to appear in a local variety theatre that has just been destroyed in a fire of unknown origin.
• C) Frank has contracted to ride Emperor, a prize horse, in the Canada Day races on July 1, but on June 28 the horse breaks a leg and has to be destroyed.
• D) Jerry, a doctor, is due to perform a heart transplant operation on Mary, and the night before the surgery his arthritis becomes so painful that he cannot hold a scalpel.
• E) Gregory, a trucker with whom you contracted last month to haul potatoes tomorrow, phones to tell you that his truck has broken down.

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Definitions:

Classical Economists

Early economists who theorized that free markets regulate themselves through the laws of supply and demand, advocating for minimal government intervention.

Government Intervention

Actions taken by a government to influence or directly control aspects of its economy, such as regulations, subsidies, and tariffs.

Full Employment

A condition in which everyone who is willing and able to work at prevailing wage rates is employed.

Employment Act

Legislation aimed at governing labor practices, including hiring, working conditions, and rights of employees and employers.