On April 1,Ken's Construction,Inc.,enters into a contract to build a store for Lo-Price Retail,Inc.,at a specific location in Metro City. On April 10,Metro changes its zoning law to prohibit the construction of a commercial building at that location. Lo-Price files a suit against Ken's Construction. In this situation
A)Ken's Construction is in breach of contract.
B)Lo-Price Retail is in breach of contract.
C)the contract is discharged.
D)the contract is suspended.

Question

Quizplus · Accepted Answer

The contract is discharged due to impossibility of performance, as the change in zoning law has made it impossible for Ken's Construction to build the store at the specified location. Both parties are relieved of their obligations under the contract.