Question

Todos Ltd. agrees to supply United Steel, Inc., with minerals from Venezuela. When the government is unexpectedly overthrown in a revolution, Todos can obtain the goods only at a much higher price. United agrees to pay but later files a suit to recover the difference. The court will most likely rule that ______.

Answer 1

Answer and Explanation:

The court will mostly likely rule that, due to unforeseen circumstances (in this instance, an overthrown government), the contract modification (by Todos) to a higher price is legal, and thus supported. Typically, whenever unforeseen circumstances occur and agreements in any contract cannot be adhered to, the law allows changes to be made to promises or agreements.