commercial impracticability

(law) A legal theory that implies a condition or term into a contract, if no express provision was made, to excuse either party when performance becomes impossible in practice because of the occurrence of a contingency, the nonoccurrence of which was a basic assumption for making the contract. A manufacturer, for example, who contracts to sell goods at a specific price in reliance on a subcontractor’s bid to provide certain components at a low price may claim commercial impracticability if the subcontractor defaults and the manufacturer can only procure comparable components at a much higher price.

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