Construction LLC agrees to build a store for Discount Retail, Inc., at a specific location. Before the work begins, the local zoning law is changed to prohibit commercial buildings at that location. In this situation

Question

Construction LLC agrees to build a store for Discount Retail, Inc., at a specific location. Before the work begins, the local zoning law is changed to prohibit commercial buildings at that location. In this situation​

Quizplus · Accepted Answer

The change in the zoning law makes the contract impossible to perform and therefore discharged. Neither Construction nor Discount Retail, Inc. are in breach of contract as the change in law is beyond their control. Compensation for lost profit would only be applicable if one party breaches the contract.

Construction LLC Agrees to Build a Store for Discount Retail