On April 1,KO Contractors,Inc. ,contracts to build a store for Lo-Cost Housewares at a specific location in Metro City.On May 1,Metro changes its zoning law to prohibit the construction of a commercial building at that location.Lo-Cost files a suit against KO.In this situation
A)KO is in breach of contract.
B)Lo-Cost 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 renders it impossible for KO to fulfill their obligations under the contract. Neither party is in breach of contract as the change in law is a circumstance beyond their control. The contract is not suspended as there is no indication that performance can be resumed at a later time.