Question

Saddler Inc. makes high quality leather seats for racing bicycles and sells them to many of the top bicycle manufacturers. There are eight available sources of the type of leather that Saddler uses, and all of them are located in the Republic of Anaerobia. Saddler has always dealt with only one company in the Republic of Anaerobia primarily due to its reasonable cost. Zappit Inc. has a contract with Saddler for 10,000 seats. Zappit has just received a letter from Saddler explaining that due to political turmoil in Anaerobia its supplier cannot export the product. Therefore, Saddler cannot complete the contract. Which of the following is most likely to be true in this scenario?

A. Saddler can be excused for nonperformance based on impossibility of performance.

B. Saddler can be excused for nonperformance based on substantial performance.

C. Zappit can sue for material breach, and Saddler cannot be excused for nonperformance.

D. Zappit can sue for specific performance if the seats are typical of all bicycle seats and not special or unique in any way.

E. Zappit can rightfully file a lawsuit, and Saddler will be liable to pay Zappit damages for nonperformance.

Answer

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