Question
Peter Parker is food delivery driver. He and Mary Jane Watson enter into a contract for him to deliver shoes for her company. This agreement
- Peter Parker is food delivery driver. He and Mary Jane Watson enter into a contract for him to deliver shoes for her company. This agreement is set to commence on September 1stand last until November 15th. Mary Jane was to pay Peter $200 per day while he was delivering her goods. At first, Peter was really happy to have entered into the agreement. However, when he calculated the profits he soon realized that $200 was too little and that he would lose money if he fulfilled his side of the agreement. On August 30th, he informed Mary Jane that he would not be making deliveries for her. Mary Jane was desperate and begged him to reconsider. She said, "Think about it until tomorrow. Don't make any decisions until we meet again tomorrow." He agreed. That night, Peter parked his delivery truck in his company's garage. At 2am, a major fire broke out and his truck was destroyed. He learned of the fire at 9am on August 31st. As he is no longer capable of making the delivery, he immediately contacted Mary Jane and notified her that he would not be making any deliveries on September 1st. She is outraged and sues him for breach of contract.
1) Which of the following is true?
A. The fire is not Mary Jane's problem. Peter should have an extra vehicle in case of problems like this
B. Mary Jane must wait until September 1st. She can sue him for Breach of Contract after that day.
C. Mary Jane can sue him immediately when he tells her that he will not be completing the agreement
D. As this was something that occurred that was beyond their control, unpredictable at the time of the agreement, and renders the contract impossible to fulfill Peter can claim that the contract is frustrated
2) Looking at this situation, this is an example of...
A. Implied Repudiation
B. Promissory Estoppel
C. Frustration of Contract
D. Express Repudiation
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