Gamma Company contracts to provide several manufacturers with tin.A cartel of tin-producing countries embargoes future shipments of tin to Gamma so that it cannot fulfill its contracts.Gamma
A)can substitute some other material for the tin.
B)is excused from the performance of its contracts.
C)is liable for breach of contract.
D)must still supply the tin needs of its customers.

Question

Quizplus · Accepted Answer

Gamma is excused from the performance of its contracts due to the unforeseeable embargo on tin. This is considered to be a case of frustration of the contract, and therefore Gamma cannot be held liable for the breach of the contract.

Gamma Company Contracts to Provide Several Manufacturers with Tin