High School

Unforeseen occurrences after a contract is made may make performance commercially impracticable. When this occurs, the rule of perfect tender no longer applies.

True or False?

Answer :

False, the rule of perfect tender does not automatically cease to apply when unforeseen occurrences make performance commercially impracticable.

The statement is incorrect. Unforeseen occurrences after a contract was made that make performance commercially impracticable do not automatically nullify the rule of perfect tender. The rule of perfect tender generally applies in contract law, which requires the seller to deliver goods that strictly conform to the terms of the contract. However, under the legal doctrine of commercial impracticability, if unforeseen events occur that make performance extremely difficult or expensive, a party may be excused from strict compliance with the terms of the contract.

To invoke the defense of commercial impracticability, the party seeking relief must demonstrate that the unforeseen occurrence was not foreseeable at the time the contract was made, that it has made performance of the contract unreasonably burdensome or expensive, and that the party seeking relief has made reasonable efforts to overcome the difficulties or mitigate the impact. If these elements are satisfied, the party may be excused from strict compliance and may be entitled to seek alternative remedies or negotiate a modification of the contract terms.

the rule of perfect tender does not automatically cease to apply when unforeseen occurrences make performance commercially impracticable. Instead, the doctrine of commercial impracticability provides a potential defense for a party facing extraordinary difficulties in fulfilling contractual obligations.

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