Question

When a change in the law renders the performance of a contract illegal, the nonperforming party is normally held in breach of contract. a) True b) False c) It depends on the contract terms d) Only if the contract is notarized

Answer 1

b) False

When a change in the law renders the performance of a contract illegal, the nonperforming party is typically not held in breach of contract. In such cases, the contract becomes void or unenforceable due to the change in the law, and the parties are generally released from their obligations under the contract. The principle of "impossibility of performance" or "frustration of purpose" may apply, excusing the nonperforming party from liability for non-performance. It does not depend on the contract terms or whether the contract is notarized.