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The Title 28 of the United States Code QUESTION #3717
Question 1
A buyer and seller agree on the sale of a unique antique vase for $\text{\$50,000}$. Before delivery, the vase is destroyed in a fire through no fault of the seller. What is the status of the contract?
  • The seller must find an identical vase or pay damages.
  • The contract is discharged by impossibility/frustration of purpose.✔️
  • The buyer must still pay the $\text{\$50,000}$ because risk of loss passed at the time of the contract.
  • The seller is in breach for failure to deliver.
Correct Answer Explanation
Under the doctrine of impossibility (or impracticability), if the subject matter of the contract is destroyed without the fault of either party, the duties under the contract are discharged.