Which of the following events would probably excuse performance of a contract based on commercial impracticability?
A) The price of a raw material increases slightly so that the contract will not be as profitable.
B) An unforeseeable trade embargo causes prices to triple.
C) The promisor of personal services dies.
D) The subject matter of the contract is destroyed.

Question

Quizplus · Accepted Answer

Commercial impracticability is a defense to breach of contract when an unforeseeable event or occurrence beyond the control of the parties, such as a trade embargo, makes performance of the contract commercially impracticable. Option B describes an unforeseeable event that significantly impacts the performance of the contract. Option A describes a slight increase in costs, which is not significant enough to excuse performance, while option C describes a situation of impossibility due to death. Option D describes a situation of impossibility due to the destruction of the subject matter, which would also excuse performance.

Which of the Following Events Would Probably Excuse Performance of a Contract