1. Hominy Woodcrafting contracted with Owens Furniture Company to sell it plywood bottoms for drawers that Hominy would manufacture. After the contract was signed, Hominy's warehouse, where it crafted drawers, was completely destroyed by a fire. Hominy claimed that the contract that it had with Owens was void due to impossibility. Owens argued that while the fire prevented Hominy from manufacturing the drawers, it did not prevent Hominy from purchasing the plywood bottoms for which it had contracted. Therefore, Owens argued, the doctrine of impossibility did not apply.

a) What is the standard for contract discharge through impossibility? (Explain fully.)

b) Does that apply here? Why or why not? (Explain fully.)

2. Aunjanue put in a bid to buy the Randolph's house. The contract contained a clause stating that the offer was subject to Aunjanue "obtaining a suitable financinginterest rateno greater than 12%." Aunjanue rejected all loan programs offered to her as having monthly payments that were too high, as not being assumable, or as having terms that were not satisfactory. The Randolphs then withdrew their offer. The Randolphs sued her for breach of contract.

a) Did the interest rate condition have to be met before there would be an enforceable contract? (Explain fully.)

b) Did Aunjanue breach the contract by rejecting all of the financing options available? (Explain fully.)