A homeowner entered into a contract with a contractor to renovate their kitchen. The contract required the homeowner to secure a necessary zoning permit before the contractor’s obligation to begin work would arise. The homeowner applied for the permit but was denied due to unforeseen changes in zoning laws. The homeowner now asserts that the contractor is still obligated to perform under the contract. How should the contractor respond?
The contractor is excused from performance because the zoning law changes make the contract illegal.
The contractor must perform, but the homeowner must indemnify the contractor for any zoning violations that occur.
The contractor must perform because unforeseen zoning changes are not addressed in the contract.
The contractor is excused from performance because the homeowner failed to fulfill a condition precedent.
In this scenario, the contractor's obligation to perform was expressly contingent on the homeowner obtaining a zoning permit, which was a condition precedent to the contractor's duty to renovate. Because the condition (securing the permit) was not satisfied and the failure was not through any fault of the contractor, the contractor's obligation to perform is excused. Other options are incorrect because they either misinterpret the nature of conditions, fail to recognize the lack of performance as excused, or misapply other contract doctrines.
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