Lonnie's Liquor store agreed to purchase 90 proof moonshine from Moonshine Manufacturing Inc. Before Moonshine Manufacturing can ship the product to Lonnie's, a law is passed making the production, sale and consumption of moonshine illegal. Which statement below is correct?
A) Since the parties agreed to the terms of the contract while it was still legal, this contract is grandfathered and the parties will be bound by it.
B) The parties will be bound by the terms of the contract unless the both agree to rescind it.
C) The contract is impossible to complete due to the law now making the subject matter illegal.
D) The contract is now impractical and the parties can renegotiate the terms.
Correct Answer:
Verified
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