The contract contained no force majeure clause

Assignment Help Business Law and Ethics

Reference no: EM13871183

Bende had a contract to sell boots to the government of Ghana for $158,500. Bende promised to deliver the boots "as soon as possible." Bende then contracted with Kiffe, who agreed to make the boots in Korea and to deliver them in Ghana within sixty to ninety days at a price of $95,000. The contract contained no force majeure clause. Kiffe knew that Bende was going to resell the boots. Kiffe failed to deliver the boots on the agreed date because a train carrying the boots had derailed in Nebraska. Bendee brought this action against Kiffe for breach of contract.

a. Kiffe claimed that the contract had been rendered commercially impracticable and that performance was excused. Do you agree? Why or why not? Was the train wreck foreseeable or unforeseeable?

b. What could Kiffe have done in negotiating the contract to protect itself from this contingency?

c. If Bende would have incurred an additional $18,815 in freight charges and miscellaneous costs had the breach not occurred, what would be its measure of damages? Is Bnede entitled to lost profits? How are damages measured in a case such as this?

Reference no: EM13871183

Questions Cloud

What are four identifying principles of boulwarism : What are four identifying principles of Boulwarism? What are the reasons for its success and failures during the years from 1940 to 1970

A notice was received from the last district : A notice was received from the Last District Bankruptcy Court. Air Chance was declared bankrupt. The airport collected only $ 1,000 on its bill of $ 3,000.

The contract contained no force majeure clause : Bende had a contract to sell boots to the government of Ghana for $158,500. Bende promised to deliver the boots "as soon as possible." Bende then contracted with Kiffe, who agreed to make the boots in Korea and to deliver them in Ghana within sixty t..

Preparing and selling the bond issue : Interest is payable semiannually and the first interest payment date is May 1, 2011. Janine uses the interest method of amortization and incurred bond issue costs in preparing and selling the bond issue.

The aging of accounts receivable method : How does the use of calculated estimates differ between the aging of accounts receivable method and the percentage of credit sales method?

Ethical and social responsibility standards for business : What ideas do you have for setting up an accountability system to ensure compliance with codes of conduct and other ethical and social responsibility standards for business?

User Account

All Pages