1. Discharge of contract

2. Impossibility of performance Impossibility of performance is a valid excuse for nonperformance and releases the party from his duty to perform. When performance of a contractual duty becomes impossible after the formation of the contract, the duty will be discharged on grounds of impossibility. Impossibility in the legal sense of the word means “ it cannot be done by anyone ” rather than “ I cannot do it. ”

3. The doctrine of frustration under the English law Since the notion of absolute impossibility may create harsh results in certain cases, courts may excuse performance using the doctrine of commercial frustration under English law. Although frustration is covered under the general terminology of impossibility, frustration is not impossibility.

4. Commercial frustration is an excuse created by law to eliminate liability when there is an intervening event or change of circumstances that has defeated the reasonable expectations of the parties. (1) Both parties must have known what the purposes of the contract were. (2) The party ’ s commercial purpose has been totally destroyed.

5. Case analysis Knell v. Henry A party leased a room overlooking the coronation route of the king. When the king took ill and the coronation canceled, did he need to perform the lease contract? Analysis: The party was excused from paying rent on the room. As the coronation was essential to the purposes of the contract, performance of contract becomes worthless to the party.

6. The doctrine of commercial impracticability in the United States The U.S. courts ’ interpretation to this doctrine---- A thing is impossible in legal contemplation when it is not practicable; and a thing is impracticable when it can be done only at an excessive and unreasonable cost (as a result of an unforeseen event). (1) The performance would result in extreme hardship, unreasonable expenses. (2) The event was unforeseeable.

7. The CISG Exemptions for Impediments Beyond Control According to Art 79, a party can be excused from nonperformance if _______________ (1) there is an impediment which is unforeseeable, unavoidable and beyond control; (2) notice was given to the other party of the impediment and of its effect on the contract.

8. The legal effects of force majeure clauses (1) A force majeure clause in a contract is an exculpatory clause. (2) The force majeure clauses list the events that will excuse nonperformance. (3) In practice, most force majeure clauses do not excuse a party ’ s nonperformance entirely, but only suspend it for the duration of the force majeure.

9. 不可抗力 （ force majeure) 卖方对由以下原因造成的损失或损害不应承 担责任： （ 1 ）由于卖方可直接控制外的因素而引起的 制造，装运，交货的迟延 （ 2 ）或因遵从任何规定，法令，法案，指示 或任何政府当局的重要指令 （ 3 ）或因天灾，购买方的行为或不作为，火 灾，水灾，流行病，天气，罢工，工厂倒闭， 禁运，战争，暴乱，运输迟延，卖方通常原 材渠道的供应迟延；

10. 无论何种原因引起的迟延，（受其影响）装 运或交货期应相应延展，并且卖方对因该迟 延而支付的额外费用应受补偿。如果迟延持 续八周以上，卖方有权撤销合同。而买方一 旦接收货物即视为放弃对（卖方）延误的损 失请求权。