Contracts II

Restatement Second of Contracts § 267

Effect on Other Party's Duties of a Failure Justified by Impracticability or Frustration

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  1. A party's failure to render or to offer performance may, except as stated in Subsection (2), affect the other party's duties under the rules stated in [R2C § 237] and [R2C § 238] even though the failure is justified under the rules stated in this Chapter.
  2. The rule stated in Subsection (1) does not apply if the other party assumed the risk that he would have to perform despite such a failure.