Question
Discharge of a contract Background: There are several reasons for which a contract can be discharged before performance under the agreement.Under common law and the
Discharge of a contract
Background:There are several reasons for which a contract can be discharged before performance under the agreement.Under common law and the UCC (Uniform Commercial Code, Section 2-615), for example, a contract may possibly be discharged because of commercial impracticability when performance could be completed only with extreme difficulty, or at unreasonable expense, or would have little practical value.Courts are relatively flexible on this matter.
A contract can also be discharged because of "impossibility" when, because of some unforeseen event or contingency that occurs after a contract is formed, it becomes impossible to perform the contract.Under the common law, impossibility applies to all contracts; under the UCC, impossibility applies only to contracts for the sale of goods.
Example:A contracts with B to drive B's car to Florida on June 1 for which A will be paid $500.Prior to June 1, B's car is destroyed in an accidental fire.A and B are discharged from obligations of the contract because it is impossible to perform because the subject matter of the contract has been destroyed.This contract is subject to common law; it is not a contract for the sale of goods, thus, the UCC does not apply.
A.Discuss a hypothetical fact scenario describing a contract for the sale of goods between GC and Barton Industries (a fictitious company) for which GC agrees to purchase 40 cases of floor cleaning solution from Barton's.State the scenario facts so that the contract should be discharged on the ground of impossibility.
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