Doctrine of Impracticability

Plain English

The doctrine of impracticability is a softer version of impossibility. It says that if performing a contract becomes so difficult, expensive, or burdensome due to unforeseen circumstances that it's unreasonable to require it, a party may be excused. Unlike impossibility, the performance isn't literally impossible—just impractical. Courts apply this cautiously because it could let parties escape bad deals. The unforeseen event must be a major change in circumstances that the parties didn't anticipate.

Example

A contractor agrees to supply rare materials at a fixed price. An unexpected embargo makes those materials extremely scarce and expensive—ten times the original cost. The doctrine of impracticability might excuse the contractor, since the cost has become so unreasonable that performance is impractical.

Used in a sentence

“The vendor argued the doctrine of impracticability when shipping costs skyrocketed due to fuel surcharges.”

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