Commercial Impracticability

Commercial impracticability is a legal concept in contract law that arises when an unforeseen event makes it extremely difficult or costly for one party to fulfill their contractual obligations. In such cases, the affected party may be excused from performing the contract without facing legal penalties. This principle is based on the idea that contracts should remain fair and reasonable, and if an unexpected circumstance significantly alters the nature of performance or costs disproportionately, it can relieve a party from their obligations while promoting justice and practicality in business dealings.