Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dan sells lumber (wood) from his lumber mill in Prince George, British Columbia.Dan has figured out that he can sell his lumber cheaper than competitors

Dan sells lumber (wood) from his lumber mill in Prince George, British Columbia.Dan has figured out that he can sell his lumber cheaper than competitors by delivering the lumber by water down the Fraser River from Prince George to the Vancouver area, where most of his customers are. He makes a lot of profit doing this, and his business has been growing. His competitors usually deliver lumber to their customers by truck.

Dan made a contract with Fran to deliver many tons of lumber to her warehouse in New Westminster.The contract price is $85,000. Dan calculates that, with his river delivery, he will make a profit of $10,000 selling this lumber to Fran. Usually, when Dan makes a deal to sell lumber, he requires a 10% deposit on the purchase price. However, Fran requests that she not have to pay anything until delivery. Dan agrees.The parties create a written agreement.The agreement does not mention the delivery transportation method.

On the day the lumber is supposed to leave Dan's place to be delivered to Fran, Dan learns that there is a group of environmental protestors that are protesting the pollution in the Fraser River.They are blocking the river, and no boat traffic can pass.This means Dan will have to deliver the lumber to Fran by truck.This will cost him an extra $15,000, meaning he will lose $5,000 on his contract, rather than make a $10,000 profit.

Dan calls Fran and tells her that she will either need to pay more for the lumber, or he will not deliver."We had an agreement," Fran says."You have to deliver the lumber for the price we agreed".

"I can't deliver now because I'll lose money on our deal", Dan responds."Also, you did not pay me a deposit in exchange for my promise to deliver the lumber, so our deal is not a legal obligation until you give me something, like money.You can't just promise to give me money in the future".

Is Dan right that there are one or more legal reasons why he is not required to deliver the lumber to Fran as agreed, or is there a legally enforceable contract so that Dan either needs to deliver the lumber or Fran can sue him for breach of contract? Be sure to use an IRAC analysis in answering your question.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elliott And Quinns Contract Law

Authors: Frances Quinn

12th Edition

1292251409, 978-1292251400

More Books

Students also viewed these Law questions