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Wee Ones Safety Ltd

Question 27

Multiple Choice

Wee Ones Safety Ltd.manufactures child car carriers and has agreed to provide 2000 statutorily compliant car seats to a department store chain.If the government changes the regulations and Wee Ones' production costs rise accordingly,what is the legal position of Wee Ones in its contract with the chain?


A) The doctrine of frustration holds that the terms of a contract are settled at the time of acceptance and Wee Ones will have to comply with its original contract terms.
B) The doctrine of frustration is a reliable avenue of escape for Wee Ones.
C) The doctrine of frustration will allow Wee Ones to modify its contract to incorporate the regulatory changes and its increased production costs.
D) The doctrine of frustration will not apply unless the parties have specifically referenced it in their contract.

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