In the United States, when a party alleges that contract performance is impossible or impracticable because of
Question:
In the United States, when a party alleges that contract performance is impossible or impracticable because of circumstances unforeseen at the time the contract was formed, a court will either discharge the party’s contractual obligations or hold the party to the contract. If the court agrees that the contract is impossible or impracticable to perform, the remedy is to rescind (cancel) the contract. Under German law, however, a court may reform a contract in light of economic developments. If an unforeseen event affects the foundation of the agreement, the court can alter the contract’s terms to align with the parties’ original expectations, thus making the contract fair to the parties.
When a contract becomes impossible or impracticable to perform, which remedy would a businessperson prefer—rescission or reformation? Explain your answer.
Step by Step Answer:
Business Law Today Comprehensive Text And Cases Diverse Ethical Online And Global Environment
ISBN: 9781285428932
10th Edition
Authors: Roger LeRoy Miller