TechBuild Inc. has a contract to install specialized software for a client by October 1st. On September 15th, a government regulation changes, making the software illegal to use for its intended purpose. TechBuild Inc. informs the client that they cannot proceed with the installation. What is TechBuild Inc.'s position regarding their contractual obligation?
TechBuild Inc. must still install the software by October 1st despite the new regulation.
TechBuild Inc. can charge additional fees for the delay caused by the regulation change.
TechBuild Inc. is excused from performing the contract because the new regulation makes the software illegal.
TechBuild Inc. can seek a new agreement with the client to install a different software.
TechBuild Inc. is excused from performing the contract due to the changed government regulation, which constitutes an unforeseen event that makes performance illegal. This falls under the excuse of conditions, where an external condition renders performance impossible.
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