Posted: August 19th, 2015

Discharge of Contract

Question 1:
McDougal Contractors made a contract with Rekowski to build an apartment house for a specific price. A number of serious apartment house fires broke out in the city, and an ordinance was adopted by the city council increasing the fire precautions that had to be taken in the construction of a new building. Compliance with these new requirements would make the construction of the apartment house for Rekowski more expensive than McDougal had originally contemplated. Is McDougal discharged from the contract to build the apartment house?

Question 2:
MegaMachines made a contract to design a new earthmoving vehicle for Lance Highway Construction Co. MegaMachines was depending on the genius of Stella Sconsconi, the head of its research department, to design a new product. Shortly after the contract was made between MegaMachines and Lance, Sconsconi was killed in an automobile accident. MegaMachines was unable to design the product without Sconsconi. Lance sued MegaMachines for damages for breach of the contract. MegaMachines claimed that the contract was discharged by Sconsconi’s death. Is it correct?

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