California First-Year Law Students' Exam (Baby Bar) — MCContractsMedium
A buyer enters into a contract to purchase a rare antique vase from a seller for $10,000. Before the payment and delivery, the vase is accidentally destroyed in a fire that was no fault of either party. Which of the following best describes the legal status of the contract?
- AThe contract is voidable at the option of the seller.
- BThe contract remains valid, and the buyer must still pay for the vase.
- CThe contract is discharged due to impossibility.
- DThe contract is voidable at the option of the buyer.
Show answer & explanationAnswer & explanation
Correct answer: C. The contract is discharged due to impossibility.
When the specific subject matter of a contract is destroyed through no fault of either party, rendering performance objectively impossible, the contract is discharged by impossibility.
Why the other options are wrong
- A. Voidability implies an option to cancel; here, performance is impossible for both.
- B. Performance is impossible, so the buyer is not obligated to pay for something that cannot be delivered.
- D. Voidability implies an option to cancel; here, performance is impossible for both.
Impossibility of Performance
A doctrine that discharges a party's contractual duty when performance becomes objectively impossible due to an unforeseeable event after contract formation and through no fault of either party.
- Event occurs after contract formation.
- Performance becomes objectively impossible (not just difficult).
- Event was unforeseeable.
- Neither party was at fault for the event.
Memory trick: Discharge is when the contract's journey ends, either by performance, agreement, or external forces.