Lars Jepsen, a Fisherman from Tofino, Regularly Sells His Catch

question 102

Multiple Choice

Lars Jepsen, a fisherman from Tofino, regularly sells his catch to packing plants in Steveston. His shipment had already left dock last Monday, but he didn't contract for its sale until yesterday. He sold this shipment for $10,000 to B.C. Packers. Jepsen still owes Sam $3,000, part of his commission for having sold one of his waterfront properties. This morning he assigned to Sam, in writing, $3,000 of the $10,000 owed under the contract with B.C. Packers. Unknown to Jepsen or B.C. Packers, at the time they made the contract, his transporter had gone down in a storm and all the cargo was lost. Jepsen had no insurance for loss of his boat. Which of the following is correct with respect to his legal position?

• A) This is an example of a breach of contract by Jepson with B.C. Packers.
• B) This is an example of a frustrated contract.
• C) Because of the frustration, Sam has no claim against either Jepson or B.C. Packers.
• D) Despite the frustration, Sam can collect the $3,000 from B.C. Packers.
• E) This is an example of a mistake causing the contract between Jepson and B.C. Packers to be void.

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Definitions:

Cost Elements

The various types of expenses that contribute to the total cost of a product or service, including materials, labor, and overhead.

Leverage Items

Products or services critical to an organization's operations that can be used as a bargaining tool in negotiations.

Standard Specification

A detailed document that describes the essential technical requirements for purchased materials, products, or services.

Supplier Technology

The technical capabilities and innovations offered by a supplier that can impact the quality, delivery, and cost of their products or services.