Jerry,a college business major,contracts with the Southwestern Co.to sell books door-to-door in Portsville,Ontario.Upon learning that a local by-law requires a $25 per day licence,Jerry declares the contract frustrated and goes home.Would the courts agree with Jerry's contention?
A)Yes,they would agree,since it is no longer a profitable business.
B)Yes,they would agree,since the license fee is a cost of doing business that was not contemplated by Jerry.
C)Yes,they would agree,because the town intended the by-law to restrict door-to-door selling.
D)No,they would not agree,because this is "self-induced" frustration.
E)No,they would not agree,because the by-law was beyond Jerry's control.

Question

Quizplus · Accepted Answer

Frustration of contract is based on the occurrence of an unforeseeable event that renders the performance of a contract impossible. In this case, Jerry was aware of the by-law requiring a license fee prior to entering into the contract. Therefore, the frustration of contract is considered self-induced and the courts would not agree with Jerry's contention.

Jerry,a College Business Major,contracts with the Southwestern Co