Essay About Mogul Oil And Breach Of Contract

Horatio Legal Analysis Case Study
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FACTS
– Horatio owns a garage
Mogul Oil agreed to supply Horatio with 5,000 liters of Mogul Extra gasoline
Horatio would pay $1.00 / liter, so $5,000
Month before delivery Mogul said they could not deliver due to threatened conflict in the Middle East
Horatio could have gone somewhere else for $1.25/liter
He insisted Mogul fulfill obligation, when they didnt he had to buy from elsewhere at $1.50/liter
Was there a breach of contract?
Horatio would say yes because
Mogul decided to not keep their promise to the contract
Mogul would say no because…
Mogul couldnt do the job because of issues out of their control
Conclusion…there was a breach of contract, it could have been completed just with more difficulty
Case Example
Tsakiroglov v Noblee & Thorl [1962] AC 93, [1961] 2 All ER 179 states “not frustrated even though it was more expensive and difficult”
Mogul could have done the job it just may have been more expensive to them and more difficult
Was the contract frustrated?
Mogul would say yes…
There was an unforeseen event – threatened conflict in the middle east
Nobody at fault – they were not to blame for the conflict
Contract is impossible to perform – no feasible way
Horatio would say no…
Contract was possible to perform – it just would have just been more difficult
Conclusion…the contract was not frustrated
Case Example
The Super Servant Two [1990] 1 Lloyds Rep 1, CA states “the contract was not frustrated, the company exercised a choice”
Mogul exercised a choice to not complete the contract
End Conclusion
The was a breach of a condition in the contract because Mogul made a choice to not follow through and therefore the contract was ruined.
Advice
Horatio