Question

Contracts Exxon had many contracts to supply crude oil to refineries on the west coast of the United States. Once the Valdez situation happened, the supply of crude oil by the Valdez was stopped. Do those companies have recourse against Exxon for any breach of contract?

at least 2 Internet citations in APA style.

Answer 1

Answer:

Contracts Exxon had many contracts to supply crude oil to refineries on the west coast of the United States. Once the Valdez situation happened, the supply of crude oil by the Valdez was stopped.

No, these companies do not have recourse against Exxon for any breach of contract because the Exxon suffered with the disaster and disaster impacted Exxon such that Exxon could not be able to comply with the contract of crude oil supply to these companies. Hence such type of provision is available in the contract which protect the interest of the party if any disaster has happened which will limit the supply of performance of supplier party.

This Valdez oil spill was a major manmade disaster that leads to spilled of 11 million Gallons of crude oil in the region of Alaska’s Prince William Sound on 24th March 1989.

Though this is a manmade disaster, but it is a big disaster which protect the Exxon company for the comply of the contract terms for the recovery time period. Thus by the time, Exxon company get recovered from this major manmade disaster, they will be free from the contract of supply of crude oil to these companies in the west coast of America.

So formally this cannot be considered as the breach of contract, these contract is voided due to the major disaster took place by the transportation company of the Exxon.

References (APA style):

· Bowen, M. G., & Power, F. C. (1993). The Moral Manager: Communicative Ethics and the" Exxon Valdez" Disaster. Business Ethics Quarterly, 97-115.

· Tyler, L. (1992). Ecological disaster and rhetorical response: Exxon's communications in the wake of the Valdez spill. Journal of Business and Technical Communication, 6(2), 149-171.

· Goldberg, V. P. (1994). Recovery for Economic Loss following the Exxon" Valdez" Oil Spill. The Journal of Legal Studies, 23(1), 1-39.