Fact Pattern 10-1
Lulene makes the best lemon meringue pies in Mississippi. So Ellen, who owns Ellen's Old Fashion Cafe, contracts with Lulene to buy 50 pies per week at the price of $5.00 per pie.
Although Lulene took a class in business law, she forgot to get her agreement with Ellen in writing. Lulene and Ellen agreed during a chat. Lulene said: "I will supply you with lemon meringue pies for however long you want them at $5.00 per pie." Ellen said: "That's great, I'll take them." Both women were pleased.
Soon Lulene had a problem. Between a hurricane in Florida and brush fires in California, the price of lemons increased by 200%. Now, instead of the $5.00 per pie price she intended to charge Ellen, she feels she must charge $7.00 per pie to make a little profit.
Lulene calls Ellen with the bad news and Ellen has a fit. She tells Lulene that's too bad, but the deal is off. Lulene says, "That's what you think!" and goes to see Amanda, her attorney.
-Refer to Fact Pattern 10-1. Assume that Ellen doesn't call the deal off when she is told the price is now $7.00, but wants to hold Lulene to the deal to supply pies at $5.00. If Lulene fails to supply the pies, and if Ellen then sues her for a breach of contract, what is Lulene most likely to argue to avoid liability?
A) sufficiency of writing
B) substantial performance
C) failure of a condition subsequent
D) impossibility
E) failure of a condition concurrent

Question

Quizplus · Accepted Answer

Lulene's argument to avoid liability is likely to be based on impossibility. The increase in the price of lemons was a supervening event that made performance of the contract commercially impracticable. Since the price increase was beyond Lulene's control, she may be excused from her obligation to supply the pies at the original price of $5.00 per pie.

Fact Pattern 10-1 Lulene Makes the Best Lemon Meringue Pies in Mississippi. So