LAW 506-002 – Contracts II

Restatement Second of Contracts § 268


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

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  1. A party's prospective failure of performance may, except as stated in Subsection (2), discharge the other party's duties or allow him to suspend performance under the rules stated in [R2C § 251(1)] and [R2C § 253(2)] even though the failure would be 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 in spite of such a failure.