Contractors LLC agrees to build a store for Discount Retail, Inc., at a specific location. Before construction begins, the local zoning law is changed to prohibit commercial buildings at that location. In this situation Select one:

a. the local zoning authority is in breach of contract.

b. the contract is discharged.

c. Discount must compensate Contractors for its lost profit.

d. Contractorsis in breach of contract.

Question

Royce

Business

10 October, 10:27

Contractors LLC agrees to build a store for Discount Retail, Inc., at a specific location. Before construction begins, the local zoning law is changed to prohibit commercial buildings at that location. In this situation Select one:

a. the local zoning authority is in breach of contract.

b. the contract is discharged.

c. Discount must compensate Contractors for its lost profit.

d. Contractorsis in breach of contract.

+2

Answers (1)

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Giancarlo Sawyer · Answer 1

In this situation:

c. Discount must compensate Contractors for its lost profit.

Explanation:

The option A is not correct in our situation as there is not agreement of local zoning authority with either the contractors or Discount Retail, Inc. so they are not breaching any contract. The option b is not correct as contract is not discharged that mean the contract is not ended. The option c is correct as now Discount Retail Inc. must compensate the contractor for its profit loss as they will not be building the store and they will have experienced a loss. Contractors are in breach of contract as the zoning authority has changed the law not to build the store at that location but not the contractors.