X Co. and Y Co. entered into a contract where the latter agreed that the sugar cane which it will produce shall be milled by the former for a period of 30 years. It was stipulated that in case of any fortuitous event, the contract shall be suspended during said period. For four years during the last war and for two years after liberation when the mill of X Co. was being rebuilt, Y Co. failed to deliver its sugar cane to the central of X Co. After the expiration of the 30-year period, Y Co. stopped the delivery of its sugarcane to the central of X Co. Subsequently, X Co. brought an action against Y Co. in order to compel the latter to deliver Sugarcane for six additional years on the ground that the fortuitous event had the effect of stopping the running the term or period agreed upon. Will the action prosper? Reasons

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
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X Co. and Y Co. entered into a contract where the latter agreed that the sugar cane which it will
produce shall be milled by the former for a period of 30 years. It was stipulated that in case of
any fortuitous event, the contract shall be suspended during said period. For four years during
the last war and for two years after liberation when the mill of X Co. was being rebuilt, Y Co.
failed to deliver its sugar cane to the central of X Co. After the expiration of the 30-year
period, Y Co. stopped the delivery of its sugarcane to the central of X Co. Subsequently, X Co.
brought an action against Y Co. in order to compel the latter to deliver Sugarcane for six
additional years on the ground that the fortuitous event had the effect of stopping the running
the term or period agreed upon. Will the action prosper? Reasons

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