Question

Rachel operates a recycled metals business and contracts to provide ten tons of scrap steel at $500 per ton to be delivered to Build-It-Rite Materials, Inc, in seven months. An unforeseen shortage of scrap steel suddenly develops, making it impossible for Adrian to fulfill the contract for less than $5,000 per ton. Adrian's best defense against performing the contract would be that:________

A) performance of the contract is commercially impracticable.
B) procuring the steel would force the seller into bankruptcy.
C) the law has rendered performance of the contract illegal.
D) the specific subject matter of the contract has been destroyed.

Answer 1

Answer: A) performance of the contract is commercially impracticable

Step-by-step explanation:

From the question, we are informed that Adrain operates a recycled metals business and contracts to provide ten tons of scrap steel at $500 per ton to be delivered to Build-It-Rite Materials, Inc, in seven months.

We are further informed that due to an unforeseen shortage of scrap steel, it was impossible for Adrian to fulfill the contract for less than $5,000 per ton.

Therefore, Adrian's best defense against performing the contract would be that performance of the contract is commercially impracticable. Due to the shortage of scrap materials, there will have been an enormous increase in price, which will make the performance of the contract commercially impracticable.