Techstate, a hardware manufacturer in the United States, has an existing contract with a client based in the Republic of Karthasia, which is going through a domestic political crisis. The resulting upheaval in that country has led to some of the shipments to the client being destroyed by warring factions. As a sanction against the country, the United States government places an embargo on all exports to that country by U.S. firms. What will be the state of the contract between Techstate and the client in Karthasia after the embargo?

Question

Quizplus · Accepted Answer

The contract between Techstate and the client in Karthasia will be terminated due to supervening illegality, as the embargo imposed by the U.S. government makes it illegal for Techstate to export goods to Karthasia. This type of contract termination occurs when a change in law or government regulation makes it impossible or illegal to perform the contract.

Techstate, a Hardware Manufacturer in the United States, Has an Existing