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 $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
A)the mail box rule.
B)commercial impracticability.
C)frustration of purpose.
D)true impossibility.

Question

Quizplus · Accepted Answer

The best choice is commercial impracticability. This situation falls under the doctrine of commercial impracticability where an unforeseeable event has made the performance of the contract impracticable for one of the parties. The bankruptcy of the landfill center has made it impracticable for Ron to perform the contract as agreed upon, resulting in a loss rather than a profit. Therefore, Ron can petition to be discharged from the contract due to commercial impracticability.

Ron Operates a Garbage Pickup Business