Quinn contracts to provide ten tons of scrap steel at $500 per ton to Rendered Materials, Inc. An unforeseen shortage of scrap steel suddenly develops, making it impossible for Quinn to fulfill the contract for less than $5,000 per ton. Quinn's best defense against performing the contract would be that
A) performance of the contract is commercially impracticable.
B) procuring the steel would force Quinn into bankruptcy.
C) the law has rendered performance of the contract illegal.
D) the specific subject matter of the contract has been destroyed.

Question

Quinn contracts to provide ten tons of scrap steel at $500 per ton to Rendered Materials, Inc. An unforeseen shortage of scrap steel suddenly develops, making it impossible for Quinn to fulfill the contract for less than $5,000 per ton. Quinn's best defense against performing the contract would be that
A) ​performance of the contract is commercially impracticable.
B) ​procuring the steel would force Quinn into bankruptcy.
C) ​the law has rendered performance of the contract illegal.
D) ​the specific subject matter of the contract has been destroyed.

Quizplus · Accepted Answer

Quinn's best defense against performing the contract would be that performance of the contract is commercially impracticable. This defense is based on the doctrine of commercial impracticability, which allows a party to be excused from performance under a contract when an unforeseen event occurs that makes performance impracticable from an economic standpoint. In this case, the unforeseen shortage of scrap steel would make it economically impracticable for Quinn to fulfill the contract for the agreed-upon price.

Quinn Contracts to Provide Ten Tons of Scrap Steel at $500