Ron operates a garbage pickup business.He contracts to pick up garbage from an apartment complex for the next 52 weeks at a price of $50 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 $15 per week.Ron's best argument in support of his petition to be discharged from the contract is:
A) the mail box rule.
B) commercial impracticability.
C) frustration of purpose.
D) true impossibility.

Question

Quizplus · Accepted Answer

Ron's situation falls under the doctrine of commercial impracticability. This doctrine allows a party to be discharged from a contract if an unforeseeable event, such as the bankruptcy of the landfill center, makes performance impracticable and overly burdensome. The additional cost of traveling 100 miles makes it commercially impracticable for Ron to continue with the contract as it would result in a loss of $15 per week. Therefore, Ron can seek to be discharged from the contract. Choices A, C, and D are not applicable in this scenario.

Ron Operates a Garbage Pickup Business