Contracts and Sales Multistate Bar Practice Exam

Under what condition can a party with a duty to perform be excused from that duty?

1. When they have agreed on a waiver

2. When the performance is impossible to achieve

3. When the other party fails to cooperate

4. When the delivery is delayed

The correct answer is: When the other party fails to cooperate

A party with a duty to perform can be excused from that duty primarily under circumstances where performance has become impossible to achieve. This concept is rooted in the doctrine of impossibility, which allows a party to be relieved of their obligations if an unforeseen event occurs that makes performance genuinely impossible. For example, if a contract stipulates the delivery of a specific item and that item is destroyed or banned from being used, the party’s obligation to perform becomes impossible. While cooperation from the other party can play a role in a contractual relationship, it does not automatically excuse performance. The fact that one party fails to cooperate can lead to potential breaches or claims of non-performance but does not necessarily relieve the other party from their obligation unless specific contractual provisions or doctrines apply. In contrast, a waiver typically involves an explicit agreement where one party relinquishes the right to enforce a particular term, but this assumes that the duty to perform still exists as a baseline. Delays in delivery can be problematic and may lead to breach claims or damages, but they do not inherently excuse performance under most contracts unless the delay creates impossibility in meeting contractual obligations. Thus, when considering which conditions genuinely provide an excuse for non-performance, impossibility stands out as a fundamental doctrine that aligns with