Question
Michael and Janet enter into a contract where Janet promises to work in Michaels museum. An accidental fire, that is not the fault of either
Michael and Janet enter into a contract where Janet promises to work in Michaels museum. An accidental fire, that is not the fault of either Michael or Janet, burns Michaels museum down after the contract is formed, but before Janet starts. As a result, Michael's museum is required to close. Which of the following is CORRECT?
Select one:
a. As the subject-matter of the contract (the museum) has been destroyed before performance was due, this amounts to a frustrating event, and the contract is automatically terminated.
b. Michael has a duty to mitigate his losses, so he must find an alternative museum facility for Janet to work in immediately.
c. Since the fire occurs at Michaels museum, he will have to bear the full responsibility of not being able to honour his contract with Janet, regardless of whether the fire was his fault or not.
d. Museum fires are reasonably foreseeable, therefore the fire does not amount to a frustrating event.
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