CONTRACTS-EFFECT OF SUPERVENING TEMPORARY IMPOSSIBILITY

Authors

Robert H. Frick S.Ed., University of Michigan Law SchoolFollow

Abstract

The plaintiff, a Japanese-owned corporation located in the United States, was operating under a limited license to do business granted under an executive order. On November 1, 1941, the plaintiff contracted to purchase from the defendant corporation 6,000 pockets of rice for delivery during November and December 1941 at the plaintiff's option. On December 7, 1941, the Secretary of the Treasury revoked all licenses issued under the executive order and the plaintiff's place of business was closed. Upon learning of this, the defendant corporation notified the plaintiff of his (defendant's) repudiation of the contract on December 9, 1941. On December 31, 1941, the plaintiff obtained a treasury license to complete the contract with the defendant and wired the defendant to ship the rice for December delivery. The defendant refused, and denied any liability under the contract. On appeal from a dismissal of plaintiff's suit for damages, held, affirmed. The promisor of an executory contract is discharged from the duty of performance when performance is rendered impossible by a supervening change of law which may be of sufficient duration to change the nature of his obligation. Pacific Trading Co. Inc. v. Louisiana State Rice Milling Co., (La. 1949) 42 S. (2d) 855.

Recommended Citation

Robert H. Frick S.Ed., CONTRACTS-EFFECT OF SUPERVENING TEMPORARY IMPOSSIBILITY, 48 Mich. L. Rev. 872 (1950).
Available at: https://repository.law.umich.edu/mlr/vol48/iss6/16