Great Tires Inc.orders 50 tons of rubber from Bill,a distributor.Bill almost always chooses Ritchie's Rubber Farm over various other rubber plantations as he gets discounted rates.The delivery of the rubber to Great Tires is due on September 1.On August 1,a fire destroys Ritchie's Rubber Farm.Which of the following statements is true in this situation?
A) Bill's performance will be excused due to impossibility of performance.
B) Bill's performance will be excused due to material breach.
C) Bill's performance will not be excused if obtaining rubber from another plantation is reasonable and possible.
D) Bill's performance will not be excused unless he can get the same quantity of rubber at a lesser price from a different source.
E) Bill's performance will be excused even if Great Tires proves that rubber from other plantations is reasonably available.

Question

Quizplus · Accepted Answer

In this situation, Bill's performance will not be excused if obtaining rubber from another plantation is reasonable and possible. A manufacturer may be discharged from an obligation to make goods for a buyer when the manufacturer's major source of raw materials is unexpectedly interrupted. But if the raw materials are reasonably available from another supplier, the manufacturer may not receive discharge because of impracticability.