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What is the Doctrine of Impracticability? Impracticability occurs when a party fails to perform his contractual obligations because an unexpected event makes performance difficult. Impracticability occurs when one party breaches his contractual obligations due to the fact that they have become insolvent. O Impracticability occurs when a party fails to perform his contractual obligations because an unexpected event makes the reason for performance pointless. . Impracticability occurs when a party fails to perform his contractual obligations because an unexpected event makes performance illegal