Question

Monumental, Inc. contracts with Champion Builders to erect a three-story office building on a parcel of land it has purchased. Before construction begins, the local zoning board changes the zoning of the parcel and those adjoining it to residential use only. Monumental’s contract with Champion is discharged.
A. True.B. False

Answer 1

Answer:

A) True

Explanation:

Monumental can discharge the contract by frustration. In order for a contract to be discharged by frustration, four conditions have to occur:

1. An unforeseeable event must occur: In this case the zoning changes were unforeseeable.
2. No party is at fault: the zoning board made the changes to the zoning of the land.
3. Performance is impossible: there is no reason why an office building should be built in a residential only area.
4. The result is radically different than expected: neither Monumental or Champion Builders expected a zoning change to occur.