06.09.2021 Views

American Contract Law for a Global Age, 2017a

American Contract Law for a Global Age, 2017a

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Canal, across the Mediterranean through the Straits of Gibraltar, and then across<br />

the Atlantic.<br />

The day be<strong>for</strong>e the oil is to be loaded, the Egyptian government—as a result of<br />

growing tensions in the Middle East—closes the Suez Canal to <strong>American</strong>-bound<br />

traffic. International protests are fruitless. Carrier’s only option to per<strong>for</strong>ming the<br />

contract is to load the oil and transport it south along the African coast—through<br />

pirate-infested Somali waters—and around the Cape of Good Hope. This will, in<br />

effect, double the cost to transport the oil, and increase the insurance costs of the<br />

voyage. Carrier refuses to honor the contract, claiming that per<strong>for</strong>mance is<br />

impracticable due to the government. Shipper ultimately finds another carrier who<br />

will transport the oil at a much higher price, and then sues Carrier <strong>for</strong> breach. What<br />

result?<br />

______________________<br />

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474 CHAPTER VII: PERFORMANCE AND BREACH

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