A wedding venue agreed to host a couple's wedding on June 15 under a written contract that covered catering and decorating services as well. Two days before the event, a fire caused significant damage to the venue, rendering it unusable. The venue informed the couple that it could no longer fulfill its obligations and offered a full refund. Can the venue avoid liability for failing to perform its contractual obligations?
Yes, because the fire prevented the venue from hosting the wedding as agreed.
Yes, because the couple could take steps to mitigate their damages by finding an alternative venue.
No, because offering a refund doesn’t fulfill all obligations under the contract.
No, because the venue should have planned for unexpected events like destruction.
The correct answer relies on the legal doctrine of impossibility, which excuses performance under a contract when an unforeseen and uncontrollable event makes performance objectively impossible. Here, a fire destroyed the wedding venue, meaning the venue could not fulfill its obligations through no fault of its own. Importantly, the venue attempted to make restitution by offering a refund, further supporting its claim of impossibility. Other options misapply or misunderstand legal concepts. For instance, the venue is not obligated to have anticipated the fire or pre-arranged contingency plans unless specifically stated in the contract. Similarly, the refund fulfills their obligation to undo the transaction but does not imply further compensation is required without additional contractual provisions.
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