Practice Quiz

CLEP Business Law

Category - Contracts

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Which of the following are examples of changed circumstances?
  1. Barry contracts with Brian to paint Brian's home. Brian's home is destroyed by fire.
  2. Joanna contracts with Judi to design Judi's wedding dress. Judi's fiancé calls off the wedding.
  3. A and B.
  4. Harold agrees to pay Howard to groom his poodle. Instead of bringing Howard a poodle, Harold brings a cockapoo.
  5. A, B, and D.
Explanation
Answer: C. Examples A and B are examples of changed circumstances. A changed circumstance that would excuse performance occurs when an unanticipated change in circumstances makes performance under the contract is impossible. A minor change in circumstances where substantial performance is still possible is not a defense to performance.
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