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Introduction to Contract Issues

Certain Exceptions to Performance

There are certain instances where the non-performance of a contract by one party will not be considered a breach of the contract. Certain examples include: (1) impossibility, (2) unconscionability, or (3) fraud. For example, if a situation arises which prevents a party from performing the contract, through no fault of his/her own, he/she might be excused from performance. Impossibility involves a wide range of factual scenarios from the incapacity of a person essential to the contract terms, the destruction of goods by an act of God, or similar related situations. It is important to remember that impossibility will usually not be an impossibility within your control. Rather, it is a larger event, such as a war or flood or other types of natural disasters or consequences.

Unconscionable or unconscionability is where one party has such an advantage over the other party when the contract was made, such that a court might deem it unfair to enforce the contract. Often these types of cases involve an uneducated person, or an uninformed person contracting with a company who has all of the information which the other person needs to make an informed decision.

In all of these situations, there are exceptions to the basic principles of contract law discussed above. If you have serious concerns that your case is strong, but may involve one of these exceptions, it would be wise to check further before bringing a lawsuit.

Introduction to Contract Issues
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