John entered into a contract with Miriam to build her a walnut dining room table for $1,000.A few days later,the price of walnut lumber increased 200%,which will result in John's incurring a $300 loss on the table.Due to the price increase,John is automatically excused from performance under the contract.

Question

Quizplus · Accepted Answer

John is not automatically excused from performance under the contract. A change in market conditions, such as a price increase in materials, does not usually excuse a party from performance unless the contract specifically states otherwise. John would still be obligated to build the table for Miriam for the original agreed-upon price unless they negotiate a new price or agree to terminate the contract.

John Entered into a Contract with Miriam to Build Her