Little Legal Analysis

Topics: Breach of contract, Contract, Anticipatory repudiation Pages: 2 (372 words) Published: June 16, 2013
Big Issue:
1. Is there a contract between Horatio and Mogul Oil Co?
2. Is the contract frustrated?
Analysis:
1. Is there a contract between Horatio and Mogul Oil Co?
Yes, there is, because Mogul entered contract with Horatio for 5000 liters at 1 dollar per liter. 2. Is the contract frustrated?
1) Is the contract discharged by performance?
Yes, the performance is precise and to the letter. They entered a contract and Mogul agreed Horatio to supply the clear number of oil with a dollar per liter. That’s what they deal with. 2) Is the contract discharged by breach of contract?

a. What is the term that is broken the contract?
Conditions, Mogul broken the contract and deprived Horatio of substantial benefit, so it’s treated as a condition. b. Is it a typical breach or anticipatory breach?
It is an anticipatory breach, because Mogul informed Horatio a month before the delivery date. 3) Are the damages appropriate remedy?
No, Mogul didn’t choose any remedies to do after told to Horatio. a. How remote are the damages?
The loss occurs is not in the usual normal course as the result of the breach, because the breach due to a threatened conflict in the Middle East, and Mogul was not able to know it when the contract was made, because the conflict like this is unscheduled. b. How many money should be awarded in damages?

It is expectation damage in this case, and Mogul supposes to compensate for $2500 (the difference in price). 4) Did Horatio do something for mitigation of losses?
No, Horatio didn’t, because when Horatio knew the change, he insisted on Mogul, rather than order with another form at $1.25. Later he has to spend 1.50. He didn’t reduce the losses, but he has the duty to do that. 5) Is there unforeseen event?

Yes, there is, because if the threatened conflict occurs before they entered contract or it didn’t occur, the result will be different. The breach of contract is due to the unforeseen event which is...
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