Excuse by Reason of a Later Unforeseen Event
A. Elements
1. Event occurs after the contract is formed but before completion of performance
2. Unforeseen
3. Makes performance impossible or commercially impracticable or frustrates the purpose of performance
B. Impossibility v. Impracticability
1. Impossibility
a. Objective
b. Can’t be done
2. Impracticability
a. Subjective
b. Can only be done with extreme and unreasonable difficulty and expense
C. Damage or destruction of subject matter
1. If risk of loss on seller – performance is not excused
2. If risk of loss on buyer – performance is not excused
D. Non-unique items – performance is still possible, therefore no excuse
E. Death
1. Party to the K who is a “special” person
i. Performance is excused
2. Person not a party to the K (Ex – employee of a party)
i. Performance is not excused
3. Party to the K but not a “special” person
i. Performance is not excused
F. Subsequent law or regulation
1. Later law makes performance of K illegal – excuse by impossibility
2. Later law makes mutually understood purpose of contract illegal – excuse by frustration of purpose
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