BLW 201 Final: Northern vs. Chugach
26 May 2018
School
Department
Course
Professor
CASE #8
Eddie Toma
Professor Staruck
Business Law 201
13 March 2016
Case 17-4
NORTHERN CORP vs CHUGACH ELECTRICAL ASSOCIATION
Supreme Court of Alaska, 1973
518 P.2d 76
FACTS: Northern Corporation entered into a contract with Chugach in August 1966 to
repair and upgrade the upstream face of Cooper Lake Dam in Alaska. The contract
required Northern Corp to obtain a rock from a quarry site at the opposite end of
the lake and to transport the rock to the dam during the winter across the lake. In
December 1966, Northern cleared the road on the ice to permit deeper freezing, but
thereafter water overflowed on the ice, preventing the use of the road. Northern
complained about the unsafe conditions, but Chugach insisted they perform. Two
trucks broke through the ice and Northern ceased operations and notified Chugach
that it considered the contract terminated for the impossibility of performance.
ISSUE: Was the contract impossible of performance?
DECISION: Judgement in favor of Northern Corporation.
REASON: Northern Corporations duty to perform was discharged because of the
impossibility of the performance.
find more resources at oneclass.com
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Document Summary
Northern corporation entered into a contract with chugach in august 1966 to repair and upgrade the upstream face of cooper lake dam in alaska. The contract required northern corp to obtain a rock from a quarry site at the opposite end of the lake and to transport the rock to the dam during the winter across the lake. December 1966, northern cleared the road on the ice to permit deeper freezing, but thereafter water overflowed on the ice, preventing the use of the road. Northern complained about the unsafe conditions, but chugach insisted they perform. Two trucks broke through the ice and northern ceased operations and notified chugach that it considered the contract terminated for the impossibility of performance.
