Impracticability under contract law is associated with what situation?

Impracticability in contract law refers to a situation where unforeseen events significantly hinder a party's ability to perform under the terms of the contract. This doctrine allows a party to be excused from performance when an unexpected event occurs that was not anticipated by the parties at the time the contract was formed. It typically applies to situations like natural disasters or changes in law that make performance extremely difficult or impossible.

For instance, if a contract is made for the sale of goods, and a natural disaster destroys the goods, the affected party may be able to claim that their performance is impracticable due to the unforeseen circumstances. This doctrine aims to prevent unjust outcomes where a party may be held liable for non-performance due to factors entirely outside their control.

The other choices involve scenarios related to contract modification or negotiating terms but do not accurately reflect the legal principle of impracticability. They suggest voluntary changes or financial difficulties rather than a significant, unexpected event that fundamentally alters the feasibility of contract performance.