Question: Modular Products manufactures and constructs modular buildings, such as schools and hospitals, for developing nations. Modular entered into a contract with the Government of Haiti
Modular Products manufactures and constructs modular buildings, such as schools and hospitals, for developing nations. Modular entered into a contract with the Government of Haiti on January 5, 2009, for the construction of two hospitals and four schools in Port-Au-Prince. The project would be complete in two years. After the contract was executed, Modular immediately began shipping the modular buildings. On January 12, 2010, a 7.0 earthquake struck the capital city, destroying all the modular buildings. Modular had four more shipments to make before the project was completed. Is the Government discharged from its obligations under the contract? Does the Government have to pay for the remaining four shipments? Discuss all issues.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
