Obligations and Contracts (Oblicon) Practice Exam

Fortuitous events are unexpected and unavoidable happenings that prevent performance. The general rule in obligations and contracts is that liability does not attach simply because such an event occurred; the obligation is discharged or performance is excused when the event makes it impossible or impracticable to comply. The debtor isn’t at fault, and the creditor can’t demand damages solely because of the fortuitous event. Exceptions arise only if the contract or law allocates the risk to one party or if there is fault or negligence on the part of the obligor. In short, no person is liable merely because a fortuitous event happened.