Question 11

Shipco, a maritime shipping company, contracted with Megacorp to transport a shipment of Megacorp products from California to New York by way of the Panama Canal. After the contract was formed but before the shipment was to take place, the Panama Canal was closed.

The only way for Shipco to deliver Megacorp's products from California to New York would be to travel all the way down and around the southern tip of South America and back up to New York. The added distance would triple Shipco's costs.

Shipco's best argument to discharge their duties under the contract would be on the grounds of:

Question 11 options:

	a) economic frustration.
	b) versatile impossibility.
	c) common law rule of disadvantage.
	d) impracticability.
	e) economic stability.

Question 12

An agreement where both parties to an existing contract agree to discharge the rights and duties of one party and substitute another person in his place is known as a/an:

Question 12 options:

	a) accord and satisfaction.
	b) release.
	c) novation.
	d) rescission.

Question 13

The statute of frauds will not apply to which of the following contracts?

Question 13 options:

	a) A contract to purchase a television for $400.
	b) A contract for the sale of an interest in land for $200.
	c) A contract to manage a factory for five years.
	d) A contract promising to pay for the debt of another.