Scenario: Stewart Trucking Company is a New York-based sole proprietorship and small long-distance trucking company that owns 1 tractor trailer truck to deliver goods on behalf of suppliers with which Stewart’s contracts. Stewart’s hires/contracts with independent licensed truck drivers to make the deliveries.
Stewart’s made 3 written and signed contracts with 3 independent licensed truck drivers on November 3, 2016.
Contract 1: a contract with Elgin to drive from New York to Colorado to deliver goods, beginning November 5, and return with the empty truck to New York on November 8, 2016 for $1200 to be paid to Elgin upon return to New York. Elgin made the delivery and round trip without incident.
Contract 2: a contract with Ian to drive from New York to California to deliver goods, beginning November 10, and to pick up goods in California and deliver them to Kansas, then return with the empty truck to New York by November 15, 2016 for $2500 to be paid to Ian upon return to New York. Ian delivered the goods to California, picked up the goods in California and delivered them to Kansas.
While stopped at a rest area in Philadelphia, on the return trip to New York on November 15, the truck was hit by another tractor trailer truck causing the engine to explode and destroy Stewart’s truck. Ian was not in the truck at the time and was not injured.
Contract 3: a contract with M.J. to drive from New York to Texas to deliver goods, beginning November 16, and return with the empty truck by November 18, 2016 for $1000 to be paid to M.J. upon return to New York.
Analyze and explain the (1) status of each of the 3 contracts, (2) Stewart’s obligation under each contract to Elgin, Ian, and M.J., respectively, and (3) the rights and obligations of Elgin, Ian and M.J. under their contracts as of November 15.