Minerals Ltd. contracts to provide several manufacturers with tin. When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Minerals so that it cannot fulfill its contracts, the distributor
A)can substitute some other material for the tin.
B)is excused from the performance of its contracts.
C)is liable for breach of contract.
D)must obtain tin in any way to meet the needs of its customers.

Question

Quizplus · Accepted Answer

The embargo by the tin-producing countries constitutes an unforeseeable event that makes Minerals Ltd.'s performance impracticable. Under the doctrine of impracticability, when a party's performance is made impracticable by an event the non-occurrence of which was a basic assumption on which the contract was made, they are excused from performance.