On April 1, Construction Contractors, Inc., contracts to build a store for Discount Retail, Inc., at a specific location in Electro City. On April 10, Electro changes its zoning law to prohibit the construction of a commercial building at that location. Discount Retail files a suit against Construction Contractors. In this situation

a. Construction Contractorsis in breach of contract.

b. Discount Retail is in breach of contract.

c. the contract is discharged.

d. the contract is suspended.

Question

Vincent

Business

3 September, 14:51

On April 1, Construction Contractors, Inc., contracts to build a store for Discount Retail, Inc., at a specific location in Electro City. On April 10, Electro changes its zoning law to prohibit the construction of a commercial building at that location. Discount Retail files a suit against Construction Contractors. In this situation

a. Construction Contractorsis in breach of contract.

b. Discount Retail is in breach of contract.

c. the contract is discharged.

d. the contract is suspended.

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Answers (1)

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Madeleine Russell · Answer 1

c. the contract is discharged.

Explanation:

As the contract is not feasible to be completed not because of any parties of the contract, but because of externalities.

This provides for the no fault conditions on both the parties of the contract.

Here the construction was to be done by the Construction Contractors Inc. for Discount Retail Inc, at a place in Electro City.

But now the construction cannot happen as because Electro City has an amendment providing no construction at the particular place where Discount Retail Inc. wants the construction.