Birinder contractually promised to sell 10 000 tons of steel to Maria.Because he honestly believed that he had a total of 25 000 tons of steel in stock,he sold 15 000 tons of steel to Boris under a separate contract.After doing so,however,he discovered that he originally had only 20 000 tons of steel in stock.Because he has only 5000 tons of steel remaining,and because he had acted honestly throughout,his contract with Maria is discharged on the basis of frustration.

Question

Quizplus · Accepted Answer

Birinder's contract with Maria is not discharged on the basis of frustration. Frustration occurs when an unforeseen event occurs after the formation of the contract that renders it impossible to fulfill. In this case, Birinder's mistake in the amount of steel he had does not qualify as an unforeseen event. Therefore, Birinder is still obligated to fulfill his contract with Maria.

Birinder Contractually Promised to Sell 10 000 Tons of Steel