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

question 147

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 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 Etobicoke stadium, but the performance was cancelled because Yung 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:

Critical Value

A point on a statistical distribution that is compared with the test statistic to determine whether to reject the null hypothesis.

Test Statistic

A numerical value calculated from sample data, used in hypothesis testing to determine whether to reject the null hypothesis.

Null Hypothesis

A default position that indicates no difference or no effect, set to be tested and possibly rejected in favor of an alternative hypothesis.

Test Statistic

A value calculated from sample data during a hypothesis test used to make a decision about the null hypothesis.