Match each commercial contract situation listed below with the correct legal concept governing its discharge or vitiation.
- A cargo shipping contract becomes completely impossible to execute due to an unexpected government decree permanently closing all seaports.Discharge by frustration
- A commercial property seller intentionally makes false statements about the building's income yield to force a buyer into signing.Vitiation by fraudulent misrepresentation
- A contract for the sale of a delivery truck is concluded while both parties are unaware that the truck was destroyed in an accident earlier that morning.Vitiation by common mistake (res extincta)
- A merchant delivers all ordered goods strictly according to the quality, quantity, and timeframe specified in the contract terms.Discharge by performance
Answer
The cargo shipping contract hindered by government action matches 'Discharge by frustration'. The intentional false statements regarding commercial property match 'Vitiation by fraudulent misrepresentation'. The mutual lack of knowledge of the destroyed truck matches 'Vitiation by common mistake (res extincta)'. The full delivery of goods per agreement matches 'Discharge by performance'.
The correct pairings accurately categorize each scenario according to principles of contract law: government prohibitions creating physical/legal impossibility lead to discharge by frustration; intentional false inducements constitute fraudulent misrepresentation; non-existence of subject matter prior to agreement creates a common mistake (res extincta); and full compliance with terms constitutes discharge by performance.
Step-by-Step Solution
Key Concept
Law of Contract: Modes of Discharge and Vitiating Factors