Ron operates a garbage pickup business. he contracts to pick up garbage from an apartment complex for the next 52 weeks at a pri

Question

2 years ago

12

Ron operates a garbage pickup business. he contracts to pick up garbage from an apartment complex for the next 52 weeks at a pri

ce of $150 per week. unexpectedly, the landfill center where ron takes the garbage to dispose of it, files for bankruptcy. as a result, ron must travel an additional 100 miles to the nearest landfill center, turning ron's expected profit into a loss of $40 per week. ron's best argument in support of his petition to be discharged from the contract is

Business

2 answers:

blsea [12.9K] · Answer 1 · 2022-06-30T12:55:02+03:00

Answer: His argument would be “Discharge by Frustration”

Explanation: There are basically four ways by which a contract can be discharged which includes;

Performance

Agreement

Repudiation and

Frustration

When a contract becomes impracticable from either or both parties to the agreement then it would have to be discharged. In this instance, it is not by agreement, there was no deliberate breach of contractual agreement, and neither is it because the terms of the contract have been fulfilled, but rather because some current unforeseen circumstances have made it impossible for the terms to be fulfilled.

There was an unforeseen event that prevented Ron from continuing with the contractual relationship with his clients, namely the relocation of the landfill to a farther distance. This is beyond his control and continuing with that arrangement would turn his expected profits into losses.

In order not to suffer avoidable losses and possible bankruptcy, Ron has the option of petitioning to be discharged from the contract on the basis of frustration of his efforts.

liq [111] · Answer 2 · 2022-06-30T11:45:49+03:00

Answer:

The options are given below:

A. the mail box rule.

B. commercial impracticability.

C. frustration of purpose.

D. true impossibility.

The correct option is B

Explanation:

Commercial impracticability refers to a situation whereby an event occurs which makes the performance of a contractual duty excessively burdensome, unbearably difficult, or extremely expensive, for the party committed to such performance.

As can be seen from the scenario given above, Ron will be incurring a loss of $40 were he to continue with the contract, this loss has rendered the contract commercially impracticable, and therefore, this will be Ron's best argument in support of his petition to be discharged from the contract.