Contract Law · defense
Impracticability refers to situations where, due to unforeseen events, a party finds it commercially unreasonable or impossible to perform contractual duties. It serves as a defense against breach of contract claims when fulfilling obligations has become excessively burdensome.
The event causing impracticability must be unforeseen and not anticipated by the parties at the time the contract was formed.
What to prove: It must be shown that the event leading to impracticability was not foreseeable by a reasonable person at the time of contract execution.
The unforeseen event must significantly hinder or prevent the party's ability to perform their contractual duties.
What to prove: The party must demonstrate that the performance has become excessively burdensome or impossible as a direct result of the unforeseen event.
The party claiming impracticability must show that their inability to perform is not due to their own fault or negligence.
What to prove: Evidence must be provided to establish that the delay or inability to perform was caused solely by the unforeseen circumstance, not by actions or failures on their part.
The burden of proof lies with the party claiming impracticability, and they must demonstrate the existence of the elements by a preponderance of the evidence.
Impracticability often appears in fact patterns involving natural disasters or regulatory changes. Analyze any unforeseeable events and their impact on contractual obligations.