Essentials of a Binding Contract

Question

In 1994, the Dryden Construction Co. contracted with the Ontario Hydro Electric Power Commission to build an access road seven miles long from its Manitou Falls generating station to provincial Highway No 105. The contract contained the following clause: The contractor agrees that he is fully informed regarding all of the conditions affecting work to be done and labor and materials to be furnished for the completion of the contract and that his information was secured by personal investigation and research and not from the Commission or its estimates and that he will make no claim against the Commission. In fact, the area over which the road was to be built was under heavy snow at the time, and the temperature was very low.  The description of the property proved to be inaccurate, there being much more muskeg than indicated.  After these facts became known, the contractor claimed to be excused from the contract, alleging that it had been frustrated and that what was required amounted to an entirely different contract. Is there a binding contract to build the road?

Summary

The question belongs to Law and it discusses about a contract where a 7 mile long highway has to be built and the contract clearly mentions that there is bad weather and that no claim against the commission can be made. The question of whether or not it is a frustration in contract or a binding contract is given in the solution in detail.

Total Word Count 186



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