Question

Racer contracted in writing to drive Owner’s one-of-a-kind, specially designed championship race car in the Miami 500 Race on July 15 for a fee of $2500to be paid by Owner. On July 1, the race car was destroyed in an accidental fire in a storage warehouse where the race car was being stored prior to the race. Owner owns no other race cars, so Owner considered the contract discharged. Racer claimed that she is still entitled to the $2500 fee because she and Owner had a valid enforceable contract.

Since this s a one of a kind vehicle, the contract is terminated without liability to either party because of the doctrine of impossibility of performance.

If the vehicle was merely a race car and not a one of a kind race car, could the result here be different?

Answer 1

Yes the answer would be different and the Owner will be liable if he cancel the contract.

According to Doctrine of Impossibility of Performance states that when it becomes ipossible to perform because of certain event which are not in the hands of any party, then the contract shall be terminated. However the contract shall be really impossible to perform and not just commercially impossible. So in case the car iwas just a race car and not any specific one of its kind car, then the owner can arrange any other car and contract can be performed. So in this case if either party terminates the contract it will be liable to compensate.

The owner has to pay teh $ 2500 fees