Hearthstone was awarded a timber sale contract from the Department of Agriculture and planned to use the timber to manufacture homes. After an economic downturn, Hearthstone sought an extension on the contract and a renegotiated price for the timber under a clause in the contract that allowed for price renegotiations due to increases in the price of timber. Eventually,

Hearthstone failed to pay for the timber arguing commercial impracticability.

CASE QUESTIONS

1. Why should the doctrine of impracticability not be applied to this case?
2. What conditions would allow the parties to successfully argue impracticability?