Question

Allegheny Energy Supply Co. and Monogahela Power Co., a subsidiary, filed suit against Anker West Virginia Mining Co., later acquired by International Coal Group, for breach of contract. The parties had a contract for Allegheny and Monogahela to buy all of the coal produced from a proposed "Sycamore 2" mine, located in Harrison County, W.Va. The coal promised amounted to about 1.8 million tons per year, not less than 20 million tons total. Anker has never produced the necessary amount of coal, topping out at 480,000 tons per year in total from the mine. Anker had sent a letter to Allegheny in 2006 claiming physical difficulties at the mine and a change in the enforcement of regulations relating to coal mining near gas wells hampered their ability to extract coal from the mine. As a result, Anker said it was unable to deliver the necessary coal. Which defense to performance is Anker relying on? a. Failure of conditions b. Force majeure c. Parol evidence d. Misrepresentation

Answer 1

In a legal dispute concerning a breach of contract, Anker West Virginia Mining Co. is relying on the force majeure defense, claiming unforeseen difficulties and regulatory changes hindered their ability to deliver coal.

Step-by-step explanation:

Allegheny Energy Supply Co. and Monogahela Power Co. are involved in a legal dispute with Anker West Virginia Mining Co. regarding a breach of contract. According to the dispute details, the defense to performance Anker is relying on is b. Force majeure. This defense could apply if Anker can prove that unexpected physical difficulties at the mine and changes in regulatory enforcement regarding coal mining near gas wells, elements beyond their control, prevented them from fulfilling the contract to deliver the agreed-upon amount of coal.

Answer 2

b. Force majeure

Step-by-step explanation:

Force majeure simply refers to unavoidable accident, unexpected incidents, or chance occurrence that impede the fulfillment of a contract by a party it.

Force majeure is a common clause that is usually included in contracts in order to free both parties to the contract from liability or obligation that may occur due the occurrence of unforeseen circumstance beyond their control.

Examples of these unforeseen incidents include a new government regulation or law, riot, war, or an act of God like earthquake, flood, hurricane, and among others.

From the question, Anker is relying on force majeure because it had sent a letter to Allegheny in 2006 claiming physical difficulties at the mine and a change in the enforcement of regulations relating to coal mining near gas wells hampered their ability to extract coal from the mine.