Question: In the US, when a party alleges that contract performance is impossible or impracticable because of circumstances unforeseen at the time the contract was formed,

In the US, 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. In other words, if a court agrees that the contract is impossible or impracticable to perform, the remedy is to cancel the contract. Under German law, however, a court may adjust the terms of (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 Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Law Questions!