What does commercial impracticability allow a party to do in a sales contract?

Commercial impracticability is a legal doctrine that comes into play in situations where the performance of a contract has become excessively burdensome, due to unforeseen events that alter the expected conditions of fulfillment. This principle allows a party to be relieved of their contractual obligations when fulfilling the contract has become excessively costly or difficult as a result of circumstances they could not have anticipated at the time the contract was formed.

For instance, if material shortages or sudden regulatory changes significantly increase the cost of delivering goods, a party may invoke commercial impracticability to excuse themselves from performing their obligations under the contract. This is grounded in the understanding that contracts are meant to be executed under reasonable expectations of performance conditions. If those conditions change drastically beyond what was contemplated, then it is justifiable for a party to seek relief from their obligations. This doctrine is intended to promote fairness and equity within commercial transactions, recognizing that rigid adherence to contract terms may lead to unjust results when unforeseen events occur.