Tanya contracts with Suite Condos Corporation to buy a unit in Suite's Bayview Tower at a premium for its view of River Bay. Unforeseeably, the town of River Bay changes its zoning law. Resort Hotels, Inc., constructs River Bay Resort, blocking what would have been Tanya's view. Tanya's best argument for a change in the Suite contract or its price is

Question

Sharon Barajas

Business

23 May, 22:00

Tanya contracts with Suite Condos Corporation to buy a unit in Suite's Bayview Tower at a premium for its view of River Bay. Unforeseeably, the town of River Bay changes its zoning law. Resort Hotels, Inc., constructs River Bay Resort, blocking what would have been Tanya's view. Tanya's best argument for a change in the Suite contract or its price is

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Answers (1)

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Tamia Randolph · Answer 1

Tanya's best argument for a change in the Suite contract or its price is frustration of purpose.

Explanation:

The frustration of purpose is a matter of contract law and occurs when unpredicted circumstances weaken the purpose of the contract. To implement the concept of the frustration of purpose, both sides must have been aware of the main purpose of the contract, to start with.

For example, Joseph rents a store from Alex to sell exotic snakes to the public. The length of the contract is five years. After two years in the enterprise, laws are passed that ban the sale of exotic snakes within the USA.

The remaining 3 years of the lease could be reasons for Joseph because Alex realized that the real aim of the lease is to market poisonous snakes. With the snake's ban, Joseph has no reason to continue the rent unless he wants to. So Alex could also cancel the contract to rent the property to a different company.