Margaret operates a large business based in a Central American country, which sells automobile tires. Margaret moved to Central America from Canada to start her venture, but has retained her Canadian citizenship. After five years of successful sales, her Canadian supplier ceased sending her tires. She contacted the supplier to find out its reason for discontinuing the sales. The company replied that because Canada was party to a U.N. sanctioned trade embargo against this country she had been deemed an enemy alien by the government of Canada. The supplier company had, on that basis, decided to break the supply contract. Margaret was desperate to maintain supplies and threatened legal action for the broken contract. Would she be successful?
A) Yes, because her "enemy alien" status does not provide grounds for the breach of contract that has happened.
B) No, because her "enemy alien" status automatically renders the contract null and void.
C) No, because the "enemy alien" status results from the implementation of the "War Measures Act" which makes all contracts abroad null and void.
D) Yes, because this may not be a valid declaration of an "enemy alien" as Canada is not at war and there are no grounds for a breach.
Correct Answer:
Verified
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