Source Heating Company contracts with Thermo Gas Company to buy 50000 cubic feet of natural gas

Assignment Help A12 Ch 22

A12 Help

Please use legal reasoning (FIRAC) to respond to this assignment and review Chapter 22View in a new window

Source Heating Company contracts with Thermo Gas Company to buy 50,000 cubic feet of natural gas. Thermo agrees to deliver the gas in five equal installments between October 1 and the following March 15. The winter is the warmest on record, however, and after the last agreed delivery, Source Heating has accepted only 30,000 cubic feet of the gas. When Thermo tenders the rest of the gas, Source Heating refuses to take it, citing the weather and claiming to be acting in good faith. Will Thermo succeed in a suit against Source Heating for breach of contract?

Facts:

  1. Contract for 50,000 cubic feet of natural gas
  2. Warmest winter on record
  3. Buyer refuses to take delivery of 20,000 cubic feet of the gas

Issue:

Whether Source Heating’s duty to accept delivery of the remaining natural gas it contracted for is discharged under the doctrine of Commercial Impracticability when the winter was the warmest on record?

Rule:

Duty Discharged under the Doctrine of Commercial Impracticability

  1. Contract
  2. Defendant refuses to perform
  3. Unforeseeable and uncontrollable events

Analysis:

  1. Contract

there was a contract for 50,000 cubic feet of natural gas

  1. Defendant refuses to perform

Source refuses to accept delivery

  1. Unforeseeable and uncontrollable events

The warmest winter of record is unforeseeable and out of Source’s control and reduced demand for gas by Sources customers.

Conclusion:

Whether Source Heating’s duty to accept delivery of the remaining natural gas it contracted for is discharged under the doctrine of Commercial Impracticability when the winter was the warmest on record? .

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