If laws and regulations increase the cost of performance:
A) the contract is terminated by operation of law.
B) they do not absolve the parties from their contractual obligations.
C) the contract is declared null and void from the beginning.
D) the parties are in breach of contract.

Question

Quizplus · Accepted Answer

Laws and regulations increasing the cost of performance do not absolve the parties from their contractual obligations. The parties are still required to perform their obligations under the contract, but they may have to pay more to do so. The other options are not applicable in this scenario.

If Laws and Regulations Increase the Cost of Performance