Munson Fixtures Inc.has contracted with Weibe Installations to provide faucets for a major building project.The contract specifies that 400 Munson 6LS faucets shall be delivered on June 8.Similar faucets are made by other manufacturers.Which of the following is the only situation where the contract might be discharged by frustration?
A)Munson Fixtures delivers the correct faucets but Weibe refuses them because they seem to be too shiny.
B)A fire,lit by a disgruntled employee,burns down the building project.
C)The factory that makes and stores Munson 6LS faucets burns down-May 23.
D)Munson Fixtures experiences severe financial difficulties and can no longer fund the faucet-making operation.
E)The faucets are set aside (for this order),then stolen on April 1; Munson only manufactures about 30 of the 6LS faucets per day.

Question

Quizplus · Accepted Answer

The contract could be discharged by frustration in this situation because the specified product (Munson 6LS faucets) is no longer available due to an unforeseen event (the factory burning down). The other situations do not fall under the legal definition of frustration, as they either involve one party breaching the contract (refusal of shiny faucets, financial difficulties) or external events that do not make performance of the contract impossible (fire in the building project, theft of faucets).