When a contractual agreement is formed between two parties, but if one party cannot perform because a previously unforeseeable circumstance makes performance impossible, which party is relieved of its duties?
A) only the party that was offering to perform
B) only the party that was receiving the performance
C) both parties, since the contractual agreement would be discharged
D) both parties, but only if the court finds substantial performance

Question

Quizplus · Accepted Answer

When a previously unforeseeable circumstance makes performance impossible, the contractual agreement would be discharged, and both parties would be relieved of their duties. This is known as the doctrine of impossibility or impracticability of performance.

When a Contractual Agreement Is Formed Between Two Parties, but If