Which of the Following Events Would Probably Excuse Performance of a Contract

question 57

Multiple Choice

Which of the following events would probably excuse performance of a contract because of commercial impracticability?

• A) The price of the commodity increases slightly so that the contract will not be as profitable.
• B) There is an unforeseeable trade embargo causing commodity prices to triple.
• C) The promisor of a personal service contract dies.
• D) The subject matter of the contract is destroyed by fire.
• E) The contract contains a time-is-of-the-essence clause.

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Definitions:

Sale of Property

The act of transferring ownership of real estate or personal property from one party to another for a price.

Taxable Income

The amount of income used to calculate how much the tax payer owes to the government in taxes.

Sick Pay

Compensation paid to employees when they are unable to work due to illness.

Child Support Payments

Payments made by a non-custodial parent to support their child or children; these are not tax-deductible.