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Supervening Impracticability

Case: Dills v. Towns of Enfield (1989, CT) [pp. 821-827]

Facts: D agrees to sell land to P on 2 conditions: (1) submission and approval


of construction plans, and (2) financing. P only submits preliminary plans, and
is eventually unable to obtain mortgage financing. Since they couldn’t get the
financing, they don’t submit the construction plans. D considers this a breach,
and keeps the deposit. P sues to recover the deposit. Referee finds for P.

Issue: Does failure to perform part of a contract excuse performance of other


terms? No.

Holding: Trial court reverses for D.

Reasoning:
o Impracticability doesn’t apply. Was no impracticability in the planning or
submitting-just in the financing.
o The conditions of impracticability must be unforeseen; the P knew of the
possibility of not being able to find funding.
o The nonoccurrence was not a basic assumption of the contract.

RULE: The Doctrine of Impossibility does not invalidate an entire contract.

Notes
d. Dependant v independent condition
e. K was supposed to go out and get financing. In any event, contractor was
supposed to turn over a set of plans, independent of his getting financing. Court
said there's a positive obligation.

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