Question

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.

Answer 1

In this situation:

c. Discount must compensate Contractors for its lost profit.

Step-by-step 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.