In which situation might you invoke the doctrine of commercial impracticability?

The doctrine of commercial impracticability is invoked when unforeseen events make the performance of a contract excessively difficult or impossible, beyond what the parties contemplated at the time of agreement. This concept recognizes that certain situations may arise which, although not amounting to impossibility, would cause a party to suffer extreme difficulty in fulfilling their contractual obligations due to circumstances that were not known or anticipated when the contract was formed.

In the scenario described in the correct answer, if an unforeseen event occurs—such as a natural disaster or significant supply chain disruption—that drastically alters the conditions under which the contract must be performed, the party affected may be able to claim commercial impracticability. This allows for a potential discharge of the contractual obligations without liability for breach, reflecting the idea that justice and fairness may require some accommodation when external circumstances change drastically and unexpectedly.

In contrast, altering contract terms by mutual agreement shows a collaborative decision rather than an uncontrollable circumstance, and a lack of acceptance by the offeree simply refers to the inability to form a contract, which doesn’t invoke this doctrine. Additionally, slight changes in market conditions typically do not meet the high threshold for invoking impracticability, as they are considered part of the normal risks of doing business.