New Builders Inc. enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Pete challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with New Builders is
A)breached.
B)discharged.
C)not affected.
D)suspended.

Question

Quizplus · Accepted Answer

The contract is discharged because a legal impediment (court order due to violation of zoning laws) prevents the fulfillment of the contract, making it impossible for New Builders Inc. to complete the project as agreed.