Crucial Exams

Multistate Bar Examination Practice Question

A manufacturer entered into a contract to produce 1,000 specialized widgets for a buyer, with delivery scheduled by December 31. The widgets require a specific, rare metal that, as both parties knew, was sourced exclusively from a single foreign country. On December 1, the U.S. government unexpectedly issued a total and immediate embargo on all imports from that country, citing national security concerns. No alternative source for the metal exists. What is the manufacturer's legal position regarding its obligation to deliver the widgets?

  • The manufacturer's duty to perform is discharged due to impossibility.

  • The manufacturer must locate a substitute material under the doctrine of commercial impracticability.

  • The contract is voidable at the manufacturer's discretion because of the embargo.

  • The manufacturer is liable for breach of contract and resulting damages.

Multistate Bar Examination
Contracts
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