When performance is impeded due to the occurrence of an event whose nonoccurrence was a basic assumption of the contract, the contract may be discharged on the grounds of:
A) commercial impracticability.
B) commercial impossibility.
C) economic frustration.
D) economic stability.

Question

Quizplus · Accepted Answer

The concept of commercial impracticability allows a contract to be discharged when performance is hindered due to an event that was not anticipated by the parties and is beyond their control, making it commercially impractical to carry out their obligations. This concept is sometimes called the doctrine of frustration of purpose, and it is recognized by courts to provide relief to parties who are affected by unforeseeable and unanticipated events that make performance unfeasible. Commercial impossibility and economic frustration may be related concepts, but they are not typically used interchangeably with commercial impracticability. Economic stability is not a relevant concept in this context.

When Performance Is Impeded Due to the Occurrence of an Event