MT311-02_Unit 5_Case Analysis_Marjorie Bowden

MT311-02_Unit 5_Case Analysis_Marjorie Bowden - of...

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Breach of Contract Page 1 of 3 Frank vs. Millie: Breach of Contract Marjorie Bowden MT311-02
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Breach of Contract Page 2 of 3 Millie contracted to sell Frank 10,000 bushels of corn to be grown on her farm. Millie’s yield was much less than anticipated due to a drought, and could only sell Frank 250 bushels. Frank accepted the lesser amount, but sued Millie for breach of contract. In the situation above, Millie would not be held liable for breach of contract. She had no control of mother nature’s drought, which caused the shortage making the outcome impossibility performance. Impossibility of performance is defined as a doctrine under which a party to contract is relieved of their duty to perform when performance becomes objectively impossible or totally impractical through no fault of either party. There are basically three types of situations that will generally qualify as grounds for the discharge of contractual obligations based on impossibility
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Unformatted text preview: of performance. They include: 1) when a party whose personal performance is essential to the completion of the contract dies or becomes incapacitated prior to the performance, (2) when the specific subject matter of the contract is destroyed, and (3) when a change in the law renders performance illegal. In the case of Frank vs. Millie, the specific subject matter of the contract was destroyed by a drought. For commercial impracticability to be successful, the performance must be extremely difficult or costly. It not only must be extreme but also must have not been known by the parties when the contract was made. In the above case, neither party could have known there was going to be a drought. Millie could have installed an irrigation system, but this would have been extremely costly. Breach of Contract Page 3 of 3 References: Miller, R. L., & Jentz, G. A. (2008). Fundamentals of business law part I. Mason, OH: Cengage Learning....
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