Question
De Old Museum is in serious need of renovation. The Museum decided to hold a fundraising auction. Donations were sought from many area businesses. The
De Old Museum is in serious need of renovation. The Museum decided to hold a fundraising auction. Donations were sought from many area businesses. The historic Seacliff Hotel agreed to donate a weekend stay for two to be sold at the auction. At the auction, Phil purchased the weekend at Seacliff Hotel for $500. Subsequently, erosion caused the Seacliff Hotel to slide into the ocean. However, Phil paid the $500 to De Old Museum and, with Phil's agreement, De Old Museum spent $300 for a weekend stay for two at another hotel. What is De Old Museum entitled to recover from Seacliff Hotel?
A)$500, because Phil paid this amount in reliance on the hotel's promise.
b) $300, because the destruction of the hotel acts as a partial discharge if a substitute performance is possible.
c) Nothing, because impossibility prevented the hotel from performing.
d) Nothing, because there was no consideration for the hotel's promise.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started