Company A enters into a contract to deliver 1,000 widgets to Company B by December 31. However, before the delivery date, a government embargo on raw materials makes it impossible for Company A to produce and deliver the widgets on time. Which of the following best describes Company A's position regarding its contractual obligations?
Company A must perform the delivery despite the embargo.
Company A can modify the delivery date to accommodate the embargo.
Company A is excused from performance due to impossibility.
Company A is required to pay damages for breach of contract.
Company A is excused from performing under the contract because the government embargo makes it impossible to fulfill the delivery, aligning with the doctrine of impossibility which excuses performance when unforeseen events make obligations unfeasible.
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How does a government embargo affect contractual obligations?