Question

Mineral Resource Company contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Mineral Resource so that it cannot fulfill its contracts, the distributor:
a. can substitute some other material for the tin.
b. is excused from the performance of its contracts.
c. is liable for breach of contract.
d. must still supply the tin needs of its customers.

Answer 1

Answer:

The correct option is B

Explanation:

Contract is the legal agreement among the parties, which binds the parties to deliver or perform their obligations or the services are rendered. And in order to be legally valid, the contract need to contain some key elements.

Under this situation, the company had a contract with the manufacturers of the tin, but due to the embargoes furniture shipment, due to which it could not be able to fulfill its contract, then the distributor will be excused from the performing the contract.