X Co. and Y Co. entered into a contract whereby the latter agreed that the sugar cane which it will produce shall be milled by the former for a period of 30 years. It was stipulated that in case of any fortuitous event, the contract shall be suspended during said period. For four (4) years during the last war and for two (2) years after liberation when the mill of X Co. was being rebuilt, Y Co. failed to deliver its sugar cane to the central of X Co. After the expiration of the 30-year period, Y Co. stopped the delivery of its sugar cane to the central of X Co. Subsequently, X Co. brought an action against Y Co. in order to compel the latter to deliver its sugar cane for six (6) additional years on the ground that the fortuitous event had the effect of stopping the running of the term or period agreed upon. Will the action prosper? Reasons
X Co. and Y Co. entered into a contract whereby the latter agreed that the sugar cane which it will produce shall be milled by the former for a period of 30 years. It was stipulated that in case of any fortuitous event, the contract shall be suspended during said period. For four (4) years during the last war and for two (2) years after liberation when the mill of X Co. was being rebuilt, Y Co. failed to deliver its sugar cane to the central of X Co. After the expiration of the 30-year period, Y Co. stopped the delivery of its sugar cane to the central of X Co. Subsequently, X Co. brought an action against Y Co. in order to compel the latter to deliver its sugar cane for six (6) additional years on the ground that the fortuitous event had the effect of stopping the running of the term or period agreed upon. Will the action prosper? Reasons
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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X Co. and Y Co. entered into a contract whereby the latter agreed that the sugar cane which it will produce shall be milled by the former for a period of 30 years. It was stipulated that in case of any fortuitous event, the contract shall be suspended during said period. For four (4) years during the last war and for two (2) years after liberation when the mill of X Co. was being rebuilt, Y Co. failed to deliver its sugar cane to the central of X Co. After the expiration of the 30-year period, Y Co. stopped the delivery of its sugar cane to the central of X Co. Subsequently, X Co. brought an action against Y Co. in order to compel the latter to deliver its sugar cane for six (6) additional years on the ground that the fortuitous event had the effect of stopping the running of the term or period agreed upon. Will the action prosper? Reasons
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