Peter Parker is food delivery driver. He and Mary Jane Watson enter into a contract for him to deliver shoes for her company. This agreement is set to commence on September 1st and last until November 15th. Mary Jane was to pay Peter $200 per day while he was delivering her goods. At first, Peter was really happy to have entered into the agreement. However, when he calculated the profits he soon realized that $200 was too little and that he would lose money if he fulfilled his side of the agreement. On August 30th, he informed Mary Jane that he would not be making deliveries for her. Mary Jane was desperate and begged him to reconsider. She said, “Think about it until tomorrow. Don’t make any decisions until we meet again tomorrow.” He agreed. That night, Peter parked his delivery truck in his company’s garage. At 2am, a major fire broke out and his truck was destroyed. He learned of the fire at 9am on August 31st. As he is no longer capable of making the delivery, he immediately contacted Mary Jane and notified her that he would not be making any deliveries on September 1st. She is outraged and sues him for breach of contract. Which of the following is true?

A. Mary Jane can sue him immediately when he tells her that he will not be completing the agreement

B. As this was something that occurred that was beyond their control, unpredictable at the time of the agreement, and renders the contract impossible to fulfill Peter can claim that the contract is frustrated

C. Mary Jane must wait until September 1st. She can sue him for Breach of Contract after that day.

D. The fire is not Mary Jane’s problem. Peter should have an extra vehicle in case of problems like this

Answer rating: 100% (QA)

the occurrence of the contract was beyond their control an... View the full answer