On April 1,Construction Contractors,Inc.,contracts to build a store for Discount Retail,Inc.,at a specific location in Electro City.On April 10,Electro changes its zoning law to prohibit the construction of a commercial building at that location.Discount Retail files a suit against Construction Contractors.In this situation
A)Construction Contractors is in breach of contract.
B)Discount Retail is in breach of contract.
C)the contract is discharged.
D)the contract is suspended.

Question

Quizplus · Accepted Answer

The contract is discharged because the occurrence of an unforeseeable event, such as a change in zoning laws, makes it impossible to perform the contract as agreed. Both parties are released from their obligations under the contract. Therefore, neither Construction Contractors nor Discount Retail is in breach of contract.