Dubocovich Had Contracted to Supply a Health-Food Store with Jars

Multiple Choice

Dubocovich had contracted to supply a health-food store with jars of Melatonin, a hormone reported in the media as a miracle potion. After they contracted, but before delivery, the government banned the sale of Melatonin so that it could be properly tested under government auspices. Dubocovich told the owner of the store, Mr. Wei, that he wouldn't be delivering the Melatonin because of the government ban. The demand for the Melatonin was high. Mr. Wei was very upset with Dubocovich for failing to honour his contractual obligations. Furthermore, he had given Dubocovich $5,000 in advance, which Dubocovich needed and used to pay the freight costs in bringing the drug to his warehouse. Wei sued Dubocovich for breach of contract. Which of the following is correct with respect to the legal position of the parties?

A) This is an example of a frustrated contract and Wei will lose, since the loss will remain where it has fallen.
B) When a contract is frustrated in this way, the frustrating party is responsible for any losses incurred by the other party.
C) Wei will be successful in his breach of contract action.
D) The contract is illegal and void.
E) Wei will be able to get back his $5,000 minus a portion of any costs Dubocovich incurred in preparing to perform the contract.