Question: 5 . If ABC Coal Company ( ABC ) has a 5 - year contract with White Star Lines ( White Star
If ABC Coal Company ABC has a year contract with White Star Lines White Star" to
deliver tons of coal per month to the new ocean liner Titanic the "Titanic" that White Star owns in return for a monthly payment of $ per ton of delivered coal, and the Titanic in its first week of operation hits an iceberg in the North Atlantic Ocean and sinks in minutes after the collision, is ABC now discharged from its performance obligations to White Star under the contract? Why or why not?
Assume the same facts as set forth in the previous question number except that i the Titanic avoids the dangerous iceberg in its first month of operation, does not sink, and continues to cross the Atlantic Ocean between Europe and North America, and ii White Star does not pay ABC any money for the months of deliveries of coal that the Titanic has received, telling ABC in the th month after the coal deliveries had begun that "money is tight" and that White Star will pay ABC as soon as business improves. Is ABC now discharged from its performance obligations to White Star under the contract? Why or why not?
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