Assignment Help A12 Ch 22
A12 Help
Please use legal reasoning (FIRAC) to respond to this assignment and review Chapter 22
Source Heating Company contracts with Thermo Gas Company to buy 50,000 cubic feet of natural gas. Thermo agrees to deliver the gas in five equal installments between October 1 and the following March 15. The winter is the warmest on record, however, and after the last agreed delivery, Source Heating has accepted only 30,000 cubic feet of the gas. When Thermo tenders the rest of the gas, Source Heating refuses to take it, citing the weather and claiming to be acting in good faith. Will Thermo succeed in a suit against Source Heating for breach of contract?
Facts:
Contract for 50,000 cubic feet of natural gas
Warmest winter on record
Buyer refuses to take delivery of 20,000 cubic feet of the gas
Issue:
Whether Source Heating’s duty to accept delivery of the remaining natural gas it contracted for is discharged under the doctrine of Commercial Impracticability when the winter was the warmest on record?
Rule:
Duty Discharged under the Doctrine of Commercial Impracticability
Contract
Defendant refuses to perform
Unforeseeable and uncontrollable events
Analysis:
Contract
there was a contract for 50,000 cubic feet of natural gas
Defendant refuses to perform
Source refuses to accept delivery
Unforeseeable and uncontrollable events
The warmest winter of record is unforeseeable and out of Source’s control and reduced demand for gas by Sources customers.
Conclusion:
Whether Source Heating’s duty to accept delivery of the remaining natural gas it contracted for is discharged under the doctrine of Commercial Impracticability when the winter was the warmest on record? .
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