Question 5

1. CitgoInc. entersinto anagreement with Exxon Corp., where it agrees to provide Exxon with oil from Venezuela.Without warning or notice, the government of Venezuela takes over and nationalizes the oil industry.Citgo can still obtain the oil, but only at a premium cost.Exxon CEO,Darren Woodsagrees, on Exxon's behalf, to pay the premium cost but later files a suit to recover the difference. The court will most likely rule that
2. a. a change in government is a common risk which mustordinarily be assumed in business.
3. b. Citgo had a preexisting duty to supply the goods at the initial price.
4. c. an unforeseen difficulty supported the contract modification.
5. d. Citgo engaged in extortion or the so-called holdup game.