Mineral Resource Company contracts to provide several manufacturers with tin.When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Mineral Resource so that it cannot fulfill its contracts,the distributor
A)can substitute some other material for the tin.
B)is excused from the performance of its contracts.
C)is liable for breach of contract.
D)must still supply the tin needs of its customers.

Question

Quizplus · Accepted Answer

The distributor is excused from the performance of its contracts due to the unexpected and unforeseeable event of the tin embargo. This is a force majeure event that makes it impossible for the distributor to fulfill its obligations. Therefore, the distributor is not liable for breach of contract. However, it is important to review the terms of the contracts to see if they include a force majeure clause that specifies the consequences of such events.

Mineral Resource Company Contracts to Provide Several Manufacturers with Tin