In a Jurisdiction Other Than B

Multiple Choice

In a jurisdiction other than B.C., Mr. Buyer sued Mr. Seller for breach of contract because Mr. Seller failed to deliver a computer system on time in accordance with the contract. Mr. Seller argued that he was not in breach, that the contract had been frustrated. The computer was destroyed by water when a careless driver knocked over a fire hydrant outside the warehouse holding the computer. No deposit had been paid. The court held that the contract was frustrated. Based on this ruling, how does the court handle the situation?

A) The court will let the losses lie where they fell, despite any of Seller's costs in preparing the computer system.
B) Buyer will succeed against Seller for damages because the court will treat it as if were an anticipatory breach.
C) The court will look at the costs incurred and any payments made, and will apportion the losses between the parties.
D) The court will treat the contract as if there were a common mistake about the existence of the subject matter.
E) Buyer will not have to pay anything to Seller unless Seller had requested a deposit at the time of contract.