Question

Allegheny Energy Supply Co. and Monogahela Power Co., a subsidiary, filed suit against Anker West Virginia Mining Co., later acquired by International Coal Group, for breach of contract. The parties had a contract for Allegheny and Monogahela to buy all of the coal produced from a proposed "Sycamore 2" mine, located in Harrison County, W.Va. The coal promised amounted to about 1.8 million tons per year, not less than 20 million tons total. Anker has never produced the necessary amount of coal, topping out at 480,000 tons per year in total from the mine. Anker had sent a letter to Allegheny in 2006 claiming physical difficulties at the mine and a change in the enforcement of regulations relating to coal mining near gas wells hampered their ability to extract coal from the mine. As a result, Anker said it was unable to deliver the necessary coal. Which defense to performance is Anker relying on?

A) Misrepresentation

B) Parol evidence

C) Failure of conditions

D) Force majeure

Answer 1

Answer:-  

The correct Option is D.

Anker is relying on the condition of Force majeure. It is used when the party is not fulfilling its contractual obligation as agreed due to certain unforeseeable  circumstances. It becomes impossible to supply the agreed output that was signed between the two parties.

Option A is incorrect. Misrepresentation is action of giving a false statement or misleading statement about some agreement or contract which is not the case here.

Option B is incorrect. Parol evidence is principle that does not allow to alter the meaning of an document that is signed in contracts or legal agreements by any verbal evidence or written declarations that were not part of the previously wrirren document.

Option C is incorrect . Failure of conditions happens when there is no operating activity that is taking place due to different reasons.