MBE Rules · Contracts

Impracticability

UCC §2-615

The rule

Performance is discharged where (1) an unforeseen event occurs, (2) the non-occurrence of which was a basic assumption, (3) making performance extremely and unreasonably difficult or expensive, AND (4) the party seeking discharge did not bear the risk. Mere increased cost is rarely enough.

In plain English

If something unexpected happens that makes it nearly impossible or way too costly to fulfill a contract, and you didn't agree to take that risk, you might not have to perform the contract.

Worked example

A supplier agrees to deliver goods, but a sudden government ban on exports makes it nearly impossible to do so. The supplier didn't expect this and isn't responsible for the risk, so they may be excused from delivering.

Memory hook

Can't foresee? Then you're free! If an unexpected event makes it too tough, performance may be off.

The trap

Students think: Any cost increase excuses performance. Wrong, because mere cost is rarely enough. The actual test is extreme difficulty or expense due to unforeseen events.

How examiners test it

The MBE loves: sudden supply chain issues or natural disasters. Trap: students assume increased costs are enough. Key: was the risk foreseeable and did they assume it?

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