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Contracts • Excuse of Non-Performance
K#147
Legal Definition
If performance of a contract is later rendered illegal by a law, the parties' performance is excused due to impossibility. If the mutually understood purpose of the contract is later rendered illegal by a law, performance is excused due to frustration.
Plain English Explanation
As of me writing this card, recreational growing and smoking of marijuana is legal in Colorado. If today you contracted with someone to sell you marijuana every month for a year, but next month Colorado changes its laws recriminalizing marijuana, then the future months of providing marijuana would be excused due to impossibility, since it would then be illegal to buy and sell marijuana.
Similarly, if today you contracted with someone to build out a business with the purpose of growing marijuana, but growing was recriminalized, performance would be excused due to frustration of purpose since the purpose is no longer legal.
Similarly, if today you contracted with someone to build out a business with the purpose of growing marijuana, but growing was recriminalized, performance would be excused due to frustration of purpose since the purpose is no longer legal.
Visual Aids
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