Invalidating factors of a contract dating phoneline

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In many business transactions, contract performance may often result in more costs than a party could foresee.

A mere increase in costs though is not a barrier to contract enforcement unless the costs are extreme and unreasonable.

Impracticability occurs where it has become impracticable or unreasonable for one or both parties to proceed with their contract duties.

Foreseeable means that a party could have predicted that the event causing the contract to be impossible or impracticable would occur. If A knew that the cat was extremely sick prior to making the agreement, then A is still liable to pay B 0.

Impracticability is not a defense if the situation is not severe enough.

The contract provision described above only covers “acts of god” or natural disasters.

That contract provision will not cover other methods of impossibility, such as warfare or a government declaring the sales of the product illegal.

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