John Contracted to Rent a Condominium in the U

question 77

Multiple Choice

John contracted to rent a condominium in the U.S.Virgin Islands for the month of September.In early August,the condominium was destroyed by a hurricane.The contract contained a clause that the parties' obligations would be discharged in the event of a natural disaster.In this situation:

• A)The parties' obligations are not discharged because a hurricane is foreseeable in the Virgin Islands.
• B)This is an enforceable force majeure clause that would discharge the parties.
• C)This results in an accord and satisfaction under which alternate time in the condominium must be provided once it is reconstructed.
• D)This is an example of the doctrine of commercial impracticability discharging the parties.
• E)The force majeure clause renders the contract void because it makes the promises illusory.

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Definitions:

Government Deregulation

The process of reducing or eliminating government rules controlling how businesses can operate, often to encourage more competition and innovation.

Economies of Scale

Enterprises gain cost benefits from their scale of operation, which typically results in the cost per unit of output decreasing as the scale increases.

Economic Profit

The total revenue of a business minus its explicit and implicit costs.

Government Regulation

Policies and rules established by government bodies to control and guide the activities of businesses and individuals within the society.