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Todos LtdAgrees to Supply Petro Refining,Inc

Question 45

Multiple Choice

Todos Ltd.agrees to supply Petro Refining,Inc.,with oil from Venezuela.When the gov?ern?ment unexpectedly nationalizes the oil industry,Todos can obtain the resource only at a much higher price.Petro agrees to pay but later files a suit to recover the difference.The court will most likely rule that


A) a change in government is a risk ordinarily assumed in business.
B) an unforeseen difficulty supported the contract modification.
C) Todos engaged in extortion or the so-called holdup game.
D) Todos had a preexisting duty to supply the goods at the initial price.

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