Which of the Following Would Most Likely Result in the Court's

question 3

Multiple Choice

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

• A) Lowe contracted to purchase a business from Lerner, but the interest rates jumped so quickly that, even before closing, he realized he would lose money, so he told Lerner he couldn't go ahead with it.
• B) Thornburn agreed to buy Patterson's tulip crop, but unknown to both of them, at the time of the contract the crop had been destroyed by the frost.
• C) Lee Ltd. agrees to haul lumber for Len Lumberjack, but a few days before the delivery date the company's best truck, the one they wanted to use, broke down.
• D) N. Yung contracts to give a performance at B.C. Place stadium, but the performance was cancelled because he was poisoned by contaminated food at a local restaurant.
• E) Mellowcream Ltd. contracted to deliver 40 dozen donuts to Pat's Place, but called Pat and told her it couldn't deliver because another customer needed another 40 dozen for an unexpected event.

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Definitions:

Maturity Value

The amount payable to an investor at the end of a fixed-term investment including principal and interest.

Invested

The allocation of resources, usually money, into financial ventures, stocks, or property with the expectation of generating a profit.

Equivalent Payments

Equivalent payments refer to a series of regular payments that have the same value under specified conditions, often used in the context of loans or mortgages.

Annual Rate Of Return

The annual percentage gain or loss on an investment.