Question
Elizabeth has entered into a contract to have an air-conditioning system installed into her house by Air Cool Ltd at the cost of $20,000.00. She
Elizabeth has entered into a contract to have an air-conditioning system installed into her house by Air Cool Ltd at the cost of $20,000.00. She pays $2000.00, and the work commences. Consider the rights and liabilities of Elizabeth and Air Cool ltd. in relation to this contract if the following alternative events occur when the work is two-thirds complete.
a. Elizabeth's house accidentally catches fire and is totally destroyed, or
b. The government announces that because of the war in Ukraine, all able bodied men must report for service, and Air Cool Ltd. has no worker to complete the task because they have gone off to war, or
c. The firm making the parts that are integral to complete the system goes out of business, and there is no other source of supply. Air Cool Ltd. uses the few remaining parts on stock to finish another system.
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