Knowledge

Impracticability

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According to note 4 under UCC 2–615, increased cost alone does not excuse performance unless the rise in cost is due to some unforeseen contingency which alters the nature of performance. It further explains that a change in market conditions resulting in a rise or drop in prices is not sufficient
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because it is triggered by the occurrence of a condition which prevents one party from fulfilling the contract. The major difference between the two doctrines is that while impossibility excuses performance where the contractual duty cannot physically be performed, the doctrine of impracticability
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deals with impracticability in the context of sales of goods, and introduces some additional constraints on the parties. A party whose ability to perform his obligations has only been partially affected must allocate production and delivery among his customers in a manner which is fair and
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does not explicitly define the scope of what is considered impracticable, as it is a fairly subjective and fact-intensive test for the courts. Generally, courts do not consider events such as an increase in price or costs beyond a normal range to allow for discharge of duties on grounds of
832:, crop failures, or a failure of a major source of supply that causes the market change or prevents a seller from obtaining supplies necessary for his performance would justify a claim of impracticability. 816:
reasonable, affording each of them with partial performance, and must notify all purchasers that there will be delay, partial delivery, or non-delivery. This is similar in some respects to the doctrine of
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comes into play where performance is still physically possible, but would be extremely burdensome for the party whose performance is due. Thus, impossibility is an
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This difficulty was not anticipated by the parties to the contract (note: some jurisdictions require that there be no measure within the contract itself to
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3 Historically restricted in common law jurisdictions but generally accepted elsewhere; availability varies between contemporary common law jurisdictions
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to claim impracticability because the parties assumed that risk when the contract was made. The comments indicate that contingencies such as war,
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excuses performance of a duty, where the said duty has become unfeasibly difficult or expensive for the party who was to perform.
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Typically, the test U.S. courts use for impracticability is as follows (with a few variations among different jurisdictions):
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impracticability, as such events are normally foreseeable risks of fixed-price contracts.
505:(also implied covenant of good faith and fair dealing or duty to negotiate in good faith) 8: 336: 227: 92: 72: 699:, and Canadian jurisprudence in both Québec and the common law provinces pertaining to 622: 585: 427: 399: 365: 258: 243: 237: 211: 479: 468: 189: 138: 129: 110: 67: 502: 389: 384: 346: 341: 184: 817: 394: 124: 101: 640: 531: 462: 447: 195: 42: 894: 877: 842: 821: 431: 179: 152: 82: 174: 786: 765: 635: 630: 617: 408: 62: 473: 379: 284: 201: 745: 675: 658: 77: 782:
The occurrence must make performance extremely expensive or difficult
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the nonoccurrence of which was a basic assumption of the contract
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Impracticability is similar in some respects to the doctrine of
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both in Québec and in the country's common law provinces
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7 Specific to civil law jurisdictions, the American
509:Contract A and Contract B in Canadian contract law 892: 874:Transatlantic Financing Corp. v. United States 664:2 Specific to civil and mixed law jurisdictions 721: 775:There must be an occurrence of a condition, 793: 701:contractual and pre-contractual negotiation 806: 728: 714: 764:condition, whereas impracticability is a 893: 497:Duty of honest contractual performance 685:of International Commercial Contracts 768:condition for a court to determine. 674:and other civil codes based on the 13: 14: 917: 800:Restatement (Second) of Contracts 499:(or doctrine of abuse of rights) 314:Enforcement of foreign judgments 278:Hague Choice of Court Convention 26: 866: 307:Singapore Mediation Convention 1: 859: 681:5 Explicitly rejected by the 448:Quasi-contractual obligations 849:Impossibility of performance 7: 835: 10: 922: 319:Hague Judgments Convention 670:4 Specific to the German 794:Restatement of Contracts 375:Anticipatory repudiation 125:unequal bargaining power 855:, two related doctrines 813:Uniform Commercial Code 807:Uniform Commercial Code 697:Uniform Commercial Code 672:BĂĽrgerliches Gesetzbuch 357:Third-party beneficiary 329:Rights of third parties 207:Accord and satisfaction 853:frustration of purpose 428:Liquidated, stipulated 273:Forum selection clause 158:Frustration of purpose 811:Section 2-615 of the 690:Canadian contract law 58:Abstraction principle 789:between the parties) 519:Related areas of law 418:Specific performance 268:Choice of law clause 233:Contract of adhesion 147:Culpa in contrahendo 53:Meeting of the minds 48:Offer and acceptance 798:Section 261 of the 683:UNIDROIT Principles 457:Promissory estoppel 337:Privity of contract 290:New York Convention 250:UNIDROIT Principles 93:Collateral contract 88:Implication-in-fact 73:Invitation to treat 906:Equitable defenses 503:Duty of good faith 400:Fundamental breach 366:Breach of contract 295:UNCITRAL Model Law 259:Dispute resolution 244:Contra proferentem 238:Integration clause 212:Exculpatory clause 738: 737: 581:England and Wales 489:Duties of parties 480:Negotiorum gestio 469:Unjust enrichment 190:Statute of frauds 139:Unconscionability 111:Misrepresentation 68:Mirror image rule 913: 885: 870: 742:impracticability 740:The doctrine of 730: 723: 716: 558:China (mainland) 527:Conflict of laws 390:Efficient breach 385:Exclusion clause 185:Illusory promise 168:Impracticability 30: 16: 15: 921: 920: 916: 915: 914: 912: 911: 910: 891: 890: 889: 888: 871: 867: 862: 838: 818:general average 809: 796: 734: 705: 577:United Kingdom 540:By jurisdiction 12: 11: 5: 919: 909: 908: 903: 887: 886: 864: 863: 861: 858: 857: 856: 846: 837: 834: 808: 805: 795: 792: 791: 790: 783: 780: 736: 735: 733: 732: 725: 718: 710: 707: 706: 704: 703: 693: 688:6 Specific to 686: 679: 668: 665: 662: 657:1 Specific to 654: 651: 650: 646: 645: 644: 643: 638: 633: 620: 615: 607: 606: 598: 597: 596: 595: 590: 589: 588: 583: 575: 570: 565: 560: 555: 550: 542: 541: 537: 536: 535: 534: 532:Commercial law 529: 521: 520: 516: 515: 514: 513: 512: 511: 500: 491: 490: 486: 485: 484: 483: 476: 471: 466: 463:Quantum meruit 459: 451: 450: 444: 443: 442: 441: 436: 435: 434: 420: 412: 411: 405: 404: 403: 402: 397: 392: 387: 382: 377: 369: 368: 362: 361: 360: 359: 354: 349: 344: 339: 331: 330: 326: 325: 324: 323: 322: 321: 311: 310: 309: 299: 298: 297: 292: 282: 281: 280: 270: 262: 261: 255: 254: 253: 252: 247: 240: 235: 230: 228:Parol evidence 222: 221: 220:Interpretation 217: 216: 215: 214: 209: 204: 199: 196:Non est factum 192: 187: 182: 177: 172: 171: 170: 165: 160: 150: 143: 142: 141: 127: 118: 113: 105: 104: 98: 97: 96: 95: 90: 85: 80: 75: 70: 65: 60: 55: 50: 45: 37: 36: 32: 31: 23: 22: 9: 6: 4: 3: 2: 918: 907: 904: 902: 899: 898: 896: 883: 879: 875: 869: 865: 854: 850: 847: 845: 844: 843:Force majeure 840: 839: 833: 831: 825: 823: 822:admiralty law 819: 814: 804: 801: 788: 787:allocate risk 784: 781: 778: 774: 773: 772: 769: 767: 763: 758: 757:impossibility 753: 751: 747: 743: 731: 726: 724: 719: 717: 712: 711: 709: 708: 702: 698: 694: 691: 687: 684: 680: 677: 673: 669: 666: 663: 661:jurisdictions 660: 656: 655: 653: 652: 648: 647: 642: 639: 637: 634: 632: 628: 624: 621: 619: 616: 614: 611: 610: 609: 608: 604: 600: 599: 594: 593:United States 591: 587: 584: 582: 579: 578: 576: 574: 571: 569: 566: 564: 561: 559: 556: 554: 551: 549: 546: 545: 544: 543: 539: 538: 533: 530: 528: 525: 524: 523: 522: 518: 517: 510: 507: 506: 504: 501: 498: 495: 494: 493: 492: 488: 487: 482: 481: 477: 475: 472: 470: 467: 465: 464: 460: 458: 455: 454: 453: 452: 449: 446: 445: 440: 437: 433: 432:penal damages 429: 426: 425: 424: 423:Money damages 421: 419: 416: 415: 414: 413: 410: 407: 406: 401: 398: 396: 393: 391: 388: 386: 383: 381: 378: 376: 373: 372: 371: 370: 367: 364: 363: 358: 355: 353: 350: 348: 345: 343: 340: 338: 335: 334: 333: 332: 328: 327: 320: 317: 316: 315: 312: 308: 305: 304: 303: 300: 296: 293: 291: 288: 287: 286: 283: 279: 276: 275: 274: 271: 269: 266: 265: 264: 263: 260: 257: 256: 251: 248: 246: 245: 241: 239: 236: 234: 231: 229: 226: 225: 224: 223: 219: 218: 213: 210: 208: 205: 203: 202:Unclean hands 200: 198: 197: 193: 191: 188: 186: 183: 181: 178: 176: 173: 169: 166: 164: 163:Impossibility 161: 159: 156: 155: 154: 153:Force majeure 151: 149: 148: 144: 140: 137: 136: 135: 134:public policy 131: 128: 126: 122: 119: 117: 114: 112: 109: 108: 107: 106: 103: 100: 99: 94: 91: 89: 86: 84: 83:Consideration 81: 79: 76: 74: 71: 69: 66: 64: 61: 59: 56: 54: 51: 49: 46: 44: 41: 40: 39: 38: 34: 33: 29: 25: 24: 21: 18: 17: 901:Contract law 878:363 F.2d 312 873: 868: 841: 826: 810: 797: 776: 770: 754: 741: 739: 636:Criminal law 618:Property law 573:Saudi Arabia 478: 461: 242: 194: 167: 145: 63:Posting rule 20:Contract law 474:Restitution 285:Arbitration 895:Categories 860:References 766:subjective 746:common law 676:pandectist 659:common law 439:Rescission 347:Delegation 342:Assignment 130:Illegality 78:Firm offer 882:D.C. Cir. 872:See e.g. 762:objective 750:contracts 678:tradition 548:Australia 395:Deviation 302:Mediation 35:Formation 884:, 1966) 836:See also 641:Evidence 613:Tort law 586:Scotland 409:Remedies 352:Novation 175:Hardship 102:Defences 43:Capacity 830:embargo 744:in the 631:estates 563:Ireland 180:Set-off 121:Threats 116:Mistake 629:, and 627:trusts 601:Other 553:Canada 649:Notes 623:Wills 605:areas 568:India 430:, or 380:Cover 851:and 132:and 123:and 876:, 820:in 748:of 603:law 897:: 824:. 625:, 880:( 779:, 729:e 722:t 715:v

Index

Contract law

Capacity
Offer and acceptance
Meeting of the minds
Abstraction principle
Posting rule
Mirror image rule
Invitation to treat
Firm offer
Consideration
Implication-in-fact
Collateral contract
Defences
Misrepresentation
Mistake
Threats
unequal bargaining power
Illegality
public policy
Unconscionability
Culpa in contrahendo
Force majeure
Frustration of purpose
Impossibility
Impracticability
Hardship
Set-off
Illusory promise
Statute of frauds

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