Laws and regulations that increase the cost of performing a contract absolve the parties from their contractual obligations.

Question

Quizplus · Accepted Answer

Laws and regulations may increase the cost of performing a contract, but they do not absolve the parties from their contractual obligations. The parties are still expected to fulfill their obligations under the terms of the contract, even if it becomes more expensive to do so. However, if the increased cost makes performance impossible or impracticable, the parties may be excused from performance under certain legal doctrines such as impossibility, frustration of purpose, or commercial impracticability.

Laws and Regulations That Increase the Cost of Performing a Contract