Rachel operates a scrap metal business and contracts to provide ten tons of scrap steel at $50 per ton to be delivered to Pure Metals,Inc. ,in six months.An un?fore?seen shortage of scrap steel suddenly develops,making it impossible for Rachel to fulfill the contract for less than $500 per ton.Rachel's best de?fense against performing the contract would be that
A)performance of the contract is commercially impracticable.
B)procuring the steel would force the seller into bankruptcy.
C)the law has rendered performance of the contract illegal.
D)the specific subject matter of the contract has been destroyed.

Question

Quizplus · Accepted Answer

The best defense for Rachel against performing the contract would be that performance is commercially impracticable. This defense is applicable when an unforeseeable event renders it significantly more difficult or costly for a party to fulfill their obligations under the contract. In this case, the shortage of scrap steel has made it impossible for Rachel to fulfill the contract for less than $500 per ton, which is significantly more than the agreed-upon price of $50 per ton. Therefore, Rachel can argue that the performance of the contract is commercially impracticable due to the unforeseen shortage of scrap steel.

Rachel Operates a Scrap Metal Business and Contracts to Provide