Also known as:impracticable · impracticabilities · commercial impracticability
Written by attorneys · grounded in primary & secondary sources — see below
A circumstance that renders performance of a duty extremely difficult or unreasonably expensive without the fault of the obligated party. The nonoccurrence of the circumstance must have been a basic assumption of the parties. When established, the circumstance discharges the duty or permits modification or substitute performance.
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How it applies
Common Examples
6
Supervening Shortage Excuses Delivery
Imperial Steel contracts to deliver 500 tons of custom alloy to a shipbuilder by a fixed date. A sudden, unforeseen embargo on the sole ore supplier makes timely performance commercially impracticable. Because the embargo was not Imperial's fault and its nonoccurrence was a basic assumption, the duty is discharged under the doctrine of impracticability.
Supervening Event Discharges Duty
Iris Energy agrees to supply natural gas to Ironclad Industries for five years at a fixed price using a specific pipeline. An earthquake destroys the pipeline and no commercially reasonable alternative route exists. Because the destruction was unforeseen and not the fault of either party, Iris Energy's duty to deliver gas through the destroyed pipeline is discharged.
Unlocatable Servitude Beneficiaries
Integrity Partners holds an easement in gross requiring maintenance contributions from numerous distant lot owners. After decades, most beneficiaries cannot be located despite reasonable efforts. The court permits modification of the easement with consent from the identifiable owners while protecting the interests of those who remain unlocated.
Nuisance Reasonableness Factor
Igor Ito operates a small factory whose emissions reach neighboring land owned by Ivy Ibarra. Because installing expensive filtration equipment would be impracticable given the factory's modest scale and the low social value of the activity, the court weighs this factor in determining that the invasion is unreasonable.
Commercial Substitute Performance
Ines Ibarra contracts to ship goods via a specific carrier that later becomes unavailable due to a port strike. A commercially reasonable alternative carrier is available at comparable cost. Ines must tender and accept performance by the substitute carrier rather than treat the original carrier's unavailability as discharging the contract.
Charitable Trust Modification
Israel Irving creates a trust to fund scholarships at a specific college that later closes. Because the original charitable purpose has become impracticable, the court may modify the trust to apply the funds to a similar educational purpose at another institution while preserving the settlor's general intent.
Common questions
Frequently Asked
4
What elements must a party prove to establish the defense of impracticability in contract cases?+
A party must show that a supervening event made performance impracticable without its fault, that the nonoccurrence of the event was a basic assumption of the contract, and that the language or circumstances do not indicate the contrary. Temporary impracticability suspends rather than discharges the duty unless resumption would be materially more burdensome.
Supporting sources
Does a substantial increase in cost alone establish commercial impracticability?
No. Increased cost alone does not excuse performance unless the rise results from an unforeseen contingency that alters the essential nature of the performance rather than merely making it more expensive. Market fluctuations and ordinary business risks are allocated to the performing party under a fixed-price contract.
Supporting sources
How does impracticability differ from impossibility?+
Impracticability excuses performance that remains physically possible but has become extremely difficult or expensive because of an unforeseen event. Impossibility traditionally required literal inability to perform. Modern doctrine treats impracticability as the broader and more commonly applied standard.
Supporting sources
Can impracticability be used to modify or terminate a servitude when beneficiaries cannot be located?+
Yes. When it becomes impracticable to locate the beneficiaries of a servitude held in gross, a court may modify or terminate the servitude with the consent of those who can be located, provided suitable provisions protect the interests of those who remain unlocated.
Supporting sources
impracticable
. It seems apparent that the amelioration of air pollution will depend on technical research in great depth on a carefully balanced consideration of the economic impact of close regulation;…
commercial
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EvidenceWritings, recordings, and photographs · SummariesUBEIntermediate