Under what circumstances is performance considered impracticable?

Performance is considered impracticable when unforeseen circumstances make it extremely difficult or impossible to fulfill the contractual obligations. This doctrine arises from the common law principle of impracticability, which recognizes that there are situations where performance may become unreasonably burdensome due to events that were not anticipated by the parties at the time of contract formation.

In the case of unforeseen circumstances, such as natural disasters, changes in law, or other significant and unexpected events, the party seeking to excuse performance must demonstrate that these events fundamentally alter the nature of their contractual obligations. This aligns with the principles found in the Uniform Commercial Code as well, which provides for situations where performance becomes impracticable due to unforeseen circumstances.

The other options generally refer to factors that may affect a party’s ability to perform but do not necessarily meet the threshold for impracticability. For instance, financial burdens or increased costs may make performance less desirable or more challenging, but they do not typically rise to the level of making performance impossible or extremely difficult in the legal sense. Therefore, option C accurately reflects the requirement for establishing impracticability in contract law.