Stella contracts to purchase Wilma's horse, Running Cloud, for $10,000. The horse dies soon after the contract is signed, but prior to Stella taking possession of the horse. Stella is still obligated to pay for the horse.

Question

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When the exact subject matter of an executory contract has been selected by the parties and later is destroyed, the performance obligation is discharged under the doctrine of impossibility.

Stella Contracts to Purchase Wilma's Horse, Running Cloud, for $10,000