Allegheny Energy Supply Co.and Monogahela Power Co.,a subsidiary,filed suit against Anker West Virginia Mining Co.,later acquired by International Coal Group,for breach of contract.The parties had a contract for Allegheny and Monogahela to buy all of the coal produced from a proposed "Sycamore 2" mine,located in Harrison County,W.Va.The coal promised amounted to about 1.8 million tons per year,not less than 20 million tons total.Anker has never produced the necessary amount of coal,topping out at 480,000 tons per year in total from the mine.Anker had sent a letter to Allegheny in 2006 claiming physical difficulties at the mine and a change in the enforcement of regulations relating to coal mining near gas wells hampered their ability to extract coal from the mine.As a result,Anker said it was unable to deliver the necessary coal.Which defense to performance is Anker relying on?

Question

Quizplus · Accepted Answer

Anker is relying on the force majeure defense, which allows a party to be excused from performing its contractual obligations due to unforeseen events beyond its control, such as physical difficulties and regulatory changes affecting its ability to mine coal.