Question

Lonnie and Karen have a contract to buy the Santos house. Following a four-day rainstorm, the Santos house was pushed off its foundation by a mudslide and is now resting about halfway over a ravine. The contract probably is

a. discharged because performance is impractical.
b. still in effect.
c. discharged because performance is impossible.
d. renegotiable at the discretion of the seller.

Answer 1

The contract between Lonnie and Karen to buy the Santos house is likely discharged because performance is impractical. The mudslide has made it impossible for the sellers to deliver possession of the house to the buyers.

Step-by-step explanation:

In this scenario, the contract between Lonnie and Karen to buy the Santos house is likely discharged because performance is impractical. The mudslide has caused the house to be pushed off its foundation and rest halfway over a ravine, making it impossible for the sellers to deliver possession of the residence to the buyers.

According to the contract's clause on possession, if the owner is unable to deliver possession of the residence due to loss or destruction of the property, the agreement can be canceled and terminated by either party upon written notice. In such a case, the parties are released from further liability, and any sums paid under the agreement are refunded.

Therefore, since the house is no longer in its original condition and cannot be delivered as agreed, the contract is likely discharged due to the impracticality of performance.