1. Iraqi Airlines entered a contract with USA Manufacturing in 2000. The contract called for USA to manufacture gear shifters for Iraqi Airlines planes. The airline paid a large deposit to cover the cost of manufacturing and then agreed to pay a set amount for each gear shifter upon delivery. Deliveries were to begin in late 2003. In March, 2003 the United States invaded Iraq and Congress delared an absolute embargo on all trade with Iraq. (Trading with Iraq would now violate U.S. law.) USA Manufacturing refused to deliver the gear shifters to Iraqi Airlines and the airline sued for breach of contract. Did USA Manufacturing breach? Why or why not?
2. Gene Autry was a famous cowboy actor and country-western singer. In the late 1930's (during the height of the Great Depression) he entered a contract to make several movies for Republic Pictures (a Hollywood movie studio that is now defunct) for which he would be paid about $5000 per movie. He made two movies before he was drafted into the Army after the start of World War II. Since he was serving his country overseas, it was temporarily impossible for him to perform his contract obligations, so the contract was suspended. At the end of the War, Autry was discharged and he could resume civilian life (and complete his contractual obligations). By then (about 1946) the Depression was over and the country was in a post war boom economy. Autry was offered over $50,000 to star in one movie by another studio. However, Republic Studios insisted that Autry complete his contract (8 more movies at $5,000 each) with them now that the impossibility had ended. Gene Autry refused claiming that he should not be required to perform because it would create an extreme financial hardship for him. In your opinion, who should win? Why?