Chapter 12 Problem, liquiduated damages and frustration of purpose defense

Chapter 12 Problem, Liquidated damages and frustration of purpose defense At Kuhn Farm Machinery Inc. (Defendant) is headquartered in France, where it manufactures farm machinery. On February 9, 1990, the Defendant contracted with 7200 Scottsdale Rd (Plaintiff) to use the Plaintiff's resort facilities for its North American dealers convention. The agreement required the resort to reserve a block of 180 guests rooms and banquet and meeting rooms for March 26 to March 31, 1991. If defendant canceled the meeting. It was required to pay liquidated damages to the resort. The defendant invited its top 200 dealers from North America as well as overseas. primarily European personnel. The defendant considered the European overseas personnel crucial to the presentation and success of the meeting On January 16, 1991, the United States and allied forces in operation Desert Storm invaded Iraq. Discovering that apparently because of the threat of terrorism, conference attendance would not meet expectations, defendant canceled the convention. The Plaintiff sued for the liquidated damage amount. Among other defenses, the defendant asserted the doctrine of frustration of purpose. Who wins and Why