Geza ordered custom-made kitchen cabinets from a reputable manufacturer located in Italy. The contract stated that the completed cabinets would be delivered to Geza's home by a date set by the manufacturer before May 2023. The construction of the kitchen proceeded on schedule until January 15, 2023, when a fire broke out in the manufacturing facility, destroying Geza's practically completed kitchen cabinet set.

Once the fire was extinguished, and the manufacturer resumed operations, they immediately started the process of rebuilding the kitchen in February 2023. The manufacturer contacted Geza and informed him of the delay, citing the clause in the contract, which stated that they would not be in breach of contract for any delay due to causes beyond their reasonable control.

The manufacturer promptly commenced rebuilding the kitchen and anticipated completion about six months later than originally contracted. As a result, the kitchen would be ready for delivery by November 2023. Geza is understandably upset by this delay. Help Geza by answering the following questions.

(1) What is the name of the clause the manufacturer relying on?

(2) What is the purpose of this type of clause in contracts generally?

(3) With reference to the facts, explain why Geza cannot treat the contract as ended?

(4) If there was no clause addressing delay, would Geza be able to treat the contract as ended? Why, or why not?

Answer rating: 100% (QA)

Answer 1 The clause the manufacturer is relying on is commonly known as a force majeure clause 2 The ... View the full answer