On May 25, 1991, Smith contracted with Jackson to repair Smith's cabin cruiser. The work was...

 

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On May 25, 1991, Smith contracted with Jackson to repair Smith's cabin cruiser. The work was to begin on May 31, 1991. On May 26, 1991, the boat, while docked at Smith's pier, was destroyed by arson. Which of the following statements is correct with regard to the contract? a. Smith would not be liable to Jackson because of mutual mistake. b. Smith would be liable to Jackson for the profit Jackson would have made under the contract. c. Jackson would not be liable to Smith because performance by the parties would be impossible. d. Jackson would be liable to repair another boat owned by Smith. On May 25, 1991, Smith contracted with Jackson to repair Smith's cabin cruiser. The work was to begin on May 31, 1991. On May 26, 1991, the boat, while docked at Smith's pier, was destroyed by arson. Which of the following statements is correct with regard to the contract? a. Smith would not be liable to Jackson because of mutual mistake. b. Smith would be liable to Jackson for the profit Jackson would have made under the contract. c. Jackson would not be liable to Smith because performance by the parties would be impossible. d. Jackson would be liable to repair another boat owned by Smith.

Answer rating: 100% (QA)

A contract may become impossible to perform due to the occurrence of certain events One of such even... View the full answer