Complications Can Give Rise to Frustration of Contract

question 17

Essay

Complications can give rise to frustration of contract. When these complications are avoidable, the court will not likely make a finding of frustration of contract. Comment on what a prudent businessperson could do to minimize the risk.

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Definitions:

Gratuitous Bailment

A legal relationship where one party, the bailor, temporarily transfers possession of an item to another, the bailee, without expectation of payment or benefit.

Bailee's Lien

The right of a bailee to retain possession of a bailor's property as security for unpaid charges related to the property.

Bailor

A person who entrusts their property into the care of another, known as the bailee, for a particular purpose.

Personal Property

Assets or belongings that are not fixed permanently to one location, such as furniture, vehicles, and electronics, distinct from real property like land or buildings.