Exxon had many contracts to supply crude oil to refineries o

Exxon had many contracts to supply crude oil to refineries on the west coast of the United States. Once the Valdez situation happened, the supply of crude oil by the Valdez was stopped. Do those companies have recourse against Exxon for any breach of contract?

Solution

In a Valdez situation, there was a case of spillage of the huge volume of the crude oil that was meant to supply the different refineries. But, due to the spillage, supply obligations were not met by Exxon.
In general, the non-performance of the contractual obligation means breach of the contract has taken place. In this case of breach of the contract, aggrieved party can go for the legal remedy as per the contract terms and approach the court of law. But, the given circumstances made Exxon to be unable to perform the obligations of the contract and it was inconceivable for the Exxon to meet its supply obligations. In this case, the refineries as parties can approach for the reorganization of contract, the refunding of the payment made to the Exxon company and or advance the supply contract in the future date. It will happen, because it was the disaster that led Exxon to be unable to discharge the performance. Hence, court of law, will also consider this aspect of the Exxon position as the reason of non-performance.