Question
1.Ace Vineyards, world-renowned makers of ice wine, have contracted with European Wine Importers for 90 cases of ice wine for each of the next two
1.Ace Vineyards, world-renowned makers of ice wine, have contracted with European Wine Importers for 90 cases of ice wine for each of the next two years.Ace Vineyards is aware of the role weather plays in the making of ice wine since the grapes need to freeze on the vines before they go mouldy.As a result, Ace Vineyards never knows how much, if any, ice wine they will be able to make in a particular year.In all its contracts for ice wine, Ace Vineyards inserts a standard clause in the contract that states the following:
"Ace Vineyards is not liable for breach of contract when there is insufficient wine to fulfill the contract if the lack of wine is the result of an act of God; which includes but not limited to weather related destruction of the grapes necessary to make ice wine."
The first year, the production of ice wine easily fulfils the contract.In the second year, the weather is so unseasonably warm and most of the grapes go mouldy before they freeze, so only a few bottles of ice wine are made.Ace Vineyards informs European Wine Importers that there is no wine available for it to import.European Wine Importers objects and threatens to sue if Ace Vineyards does not provide the 90 cases.What is the main issue? Are European Wine Importers likely to succeed?(5)
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