Question

On April 1, Ken's Construction, Inc., enters into a contract to build a store for Lo-Price Retail, Inc., at a specific location in Metro City. On April 10, Metro changes its zoning law to prohibit the construction of a commercial building at that location. Lo-Price files a suit against Ken's Construction. In this situation
a. Ken's Construction is in breach of contract.
b. Lo-Price Retail is in breach of contract.
c. the contract is discharged.
d. the contract is suspended.

Answer 1

Answer:

c.

Explanation:

Based on the information provided it can be said that in this situation the contract is discharged. This means that the contract is terminated, either because obligations were met, or something is preventing the obligations from being met by either party involved. Which in this scenario the new zoning law is preventing Ken's Construction from upholding their contract obligations and thus Lo-Price's law suit against them would end in the contracts discharge.