D is corrent. When performance of a contract becomes objectively impossible, both parties to the contract are discharged from their contractual obligations. The destruction of Smith’s cabin cruiser through no fault of either party constitutes objective impossibility of performance. Therefore, both parties are relieved of their contractual obligations.
A is incorrect. When performance of a contract becomes objectively impossible, both parties to the contract are discharged from their contractual obligations. The destruction of Smith’s cabin cruiser through no fault of either party constitutes objective impossibility of performance. Therefore, both parties are relieved of their contractual obligations.
B is incorrect. There was no mistake, mutual or otherwise, at the time the contract was formed. When the contract was formed a boat existed.
A is incorrect. When performance of a contract becomes objectively impossible, both parties to the contract are discharged from their contractual obligations. The destruction of Smith’s cabin cruiser through no fault of either party constitutes objective impossibility of performance. Therefore, both parties are relieved of their contractual obligations.
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