QUESTION 8 Techstate, a hardware manufacturer in the United States, has an exist

Question

QUESTION 8 Techstate, a hardware manufacturer in the United States, has an existing contract with a client based in the Republic of Arthasia, which is going through a domestic political crisis. The resulting upheaval in that country has led to some of the shipments to the client being destroyed by warring factions. As a sanction against the country, the United States government places an embargo on all exports to that country by U.S. firms. What will be the state of the contract between Techstate and the client in Arthasia after the embargo? A. It will be terminated due to destruction of subject matter B. It will be terminated due to incompetency of Techstate C. It will be terminated due to lapse of time. D. It will be terminated due to supervening illegality

Explanation / Answer

The correct option is

It will be terminated due to supervening illegality.

Supervening illegality means when a decision of country, government state or court makes the object of an offer illegal. Because of this the offer is terminated. Here the same scenario is occurring.

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