Question

Suppose Frank owns a vintage Porsche in mint condition. He agrees to sell it to Smith, but the night before the parties are to exchange money for the title, a hurricane rips through Frank's town and collapses the roof of the garage into the Porsche. The car is no longer in mint condition or even sellable. The parties are thus discharged from their obligations under the contract. Why?

Answer 1

Answer:

This is a situation arising from objective impossibility.

Explanation:

The contract was made for mint condition of car. The car damaged while it was with Frank. Thus, parties are thus discharged from their obligations under the contract.

Answer 2

Answer: Objective Impossibility

Explanation:

I believe this question has options but regardless, Objective Impossibility should be the answer.

Objective Impossibility arises when a party can no longer render the performance required.

The Subject Matter of a contract being destroyed or any other supervening Impossibility after the formation of the contract are considered types of Objectives Impossibility.

Seeing as the Porsche was the subject matter and it was destroyed, it qualifies as an Objective Impossibility.

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