Question

Putnam Corporation makes a sleeping pill that is legally sold in the United States. Putnam has a contract with a chain of pharmacies to provide 4,800 cases of the sleeping pill for retail sale. One month after the contract is signed, but before any pills have been delivered, the Food and Drug Administration passes regulations that make it illegal to buy or sell the drug because it is highly addictive and has caused high levels of abuse, as well as a few deaths. Can the pharmacy chain get out of the contract

Answer 1

Answer: Yes, due to the action taken by the government it makes it difficult to perform under the contract.

Explanation:

When the contract was signed by Putnam corporation and the pharmacies it was legal and valid contract. Due to the after effects of the pills sold by the pharmacies Food and Drug Administration has passed new regulations that the drug sold is illegal. The contract should also abide by the regulations passed by government authorities.

So the contract between the pharmacy and Putnam becomes void. The pharmacy chain is out of the contract and need not sell the drugs which are addictive and which has caused few deaths.