Increased difficulty of performance or reduced profitability will constitute valid grounds for claiming impossibility of performance.

Question

Quizplus · Accepted Answer

A party's nonperformance is excused because of impossibility of performance. This may occur because of the death of an essential party, the destruction of essential materials, or the subject matter of the contract becomes illegal. Mere increased difficulty or reduced profitability, however, does not constitute impossibility of performance.

Increased Difficulty of Performance or Reduced Profitability Will Constitute Valid