Nora Contracts with Odell to Sell Land That, Unknown to Either

question 2

Multiple Choice

Nora contracts with Odell to sell land that, unknown to either party, has groundwater contaminated from adjacent land that was occupied several decades earlier by a paper pulp processing plant. When this is discovered, Nora asserts the doctrine of commercial impracticability. This doctrine applies only when, with respect to an event that renders performance impossible, at the time the contract was formed the parties​

• A) ​could not have reasonably foreseen the supervening event.
• B) ​could have reasonably foreseen the supervening event.
• C) ​should have foreseen the supervening event, reasonable or not.
• D) ​should not have foreseen any supervening events.

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Definitions:

Taxes and Fees

Compulsory charges imposed by government entities or regulatory bodies on business transactions, goods, and services.

Government Agency

An organization under the government that is responsible for the specific area of administration or function according to law.

Simple Payback

A financial metric that calculates the time required to recoup the initial investment in a project or asset through cash inflows or savings.

Cash Flow

The total amount of money being transferred into and out of a business, project, or financial product.