Hank has contracted with Nancy to purchase 50 bags of wheat that she stored in her barn for $25 each.A few days before delivery,the barn is destroyed by fire.Which of the following statements is correct?

Question

Quizplus · Accepted Answer

The destruction of the subject matter, which is the 50 bags of wheat stored in Nancy's barn, has made it impossible for Nancy to fulfill her obligations under the contract. Therefore, she is discharged from any further obligations under the contract. This is known as the doctrine of impossibility or frustration of purpose, which excuses performance when an unforeseeable event makes performance impractical or impossible. As a result, Nancy is not obligated to compensate Hank, nor is she liable for any loss he may suffer as a result of having to purchase the wheat from another supplier at a higher price.

Hank Has Contracted with Nancy to Purchase 50 Bags of Wheat