Solved

Which of the Following Contracts Has Been Frustrated

Question 7

Multiple Choice

Which of the following contracts has been frustrated?


A) Dreamhomes Co is planning to construct 40 semi-detached homes. After a public offer has been made and all prospective units have been sold but not allocated, the City Council only gives permission to build 36. The four purchasers left out in the cold after allocation of the homes claim damages. Dreamhomes claims that those contracts have been frustrated.
B) Flytech Industries Co has been contracted by Libyan National Airways to construct a passenger jet for immediate use. Libyan Airways plans to use the passenger jet for a new route between Tripoli and Rome. As construction nears completion, Libyan Airways is told by the authorities at Da Vinci Airport in Rome that it will not be issued landing rights at the airport.
C) United Tankers Co operates two tankers for the shipment of oil from the Middle East, the Monaco and the Lichtenstein. United Petroleum contracted with United Tankers for the shipment of oil from Qatar to Portsmouth in April. Internally, United Tankers allocates the Lichtenstein for this job. In February, the Lichtenstein is attacked by terrorists and sunk off the coast of Yemen. The Monaco is occupied with another job. United Petroleum sues for damages. United Tankers claims frustration.
D) None of the options given is correct.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents