Question
Macy's Home Furnishings entered into a contract with Top Notch Rugs, a company specializing in the importation of Persian rugs from the Middle East. The
Macy's Home Furnishings entered into a contract with Top Notch Rugs, a company specializing in the importation of Persian rugs from the Middle East. The contract was for 100 rugs to be delivered to Macy's main distribution warehouse by the 1st day of every month, between January and December.
Top Notch Rugs signed a contract with Macy's to deliver 100 Persian Rugs to Macy's main distribution warehouse. The rugs were to be delivered on the first of every month between January and December. Top Notch delivered the first month. The next month they were not able to deliver because of ongoing violence in the area.
Can Top Notch Rugs be released from the contract for violence in the region?
The Doctrine on Impracticability states the work cannot be completedif the problem cannot be predicted or if the event makes it difficult or impossible to deliver the product the company can be released from the contract. The event can be caused by Natural disaster, injury, or death to the manufacturer.
The Doctrine on Impracticability does not give regional violence as a reason to cancel a contract. However, the doctrine does state an event has to be unforeseen.
The Doctrine on Impracticability would not apply in this situation because Top Notch Rugs signed the contract knowing that there was ongoing violence in the Middle East. Furthermore, the company was able to deliver the product in the first month to Macy's with ongoing violence.
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