Breach & Repudiation: Changed Circumstances

Question 1

A breaching party may avoid performance if the circumstances change such that performance is ______ or _______ or the principal purpose of the contract is ________

Answer 1

impossible; impracticable; substantially frustrated

Question 2

The changed circumstances must result from ___

Answer 2

unforeseeable event that was not caused by the breaching party (act of God or third party)

Question 3

A performance is ______ if it cannot be performed by anyone, not just the breaching party

Answer 3

impossible

Question 4

What are the three instances in which a performance is impossible?

Answer 4

death or incapacity of a person necessary for the performance
destruction of subject matter
prevention of the performance by law

Question 5

A performance is ______ if it will cause extreme and unreasonable difficulty, expense, injury, or loss to one of the parties.

Answer 5

impracticable

Question 6

A party’s principal purpose is substantially frustrated if the other party’s performance becomes _________ regardless of whether it is possible or practicable

Answer 6

virtually worthless