Planners & Builders, Inc., enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Nora challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with Planners & Builders is
A) breached.
B) discharged.
C) not affected.
D) suspended.

Question

Planners & Builders, Inc., enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Nora challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with Planners & Builders is​
A) ​breached.
B) ​discharged.
C) ​not affected.
D) ​suspended.

Quizplus · Accepted Answer

The contract is discharged because a legal intervention (court order based on zoning laws) has made it impossible to fulfill the contract's terms, thus releasing the parties from their obligations.