Why might a contract become void due to an "Act of God"?

Study for the CA Foundation Business Law Exam. Practice with multiple-choice questions, review detailed explanations, and ace your exam!

A contract can become void due to an "Act of God" primarily because natural events, such as floods, earthquakes, or severe storms, hinder the fulfillment of the contract. These unforeseen and uncontrollable natural occurrences can make it physically impossible or commercially impracticable for one or both parties to perform their contractual obligations.

The concept of "Act of God" generally refers to events that are not caused by human actions and are beyond the parties' control, thus affecting the enforceability of the contract. If a party cannot perform because of such an event, they may be excused from liability for non-performance, effectively rendering the contract void.

For instance, if a contract requires delivery of goods that are destroyed in a hurricane, the event qualifies as an Act of God, and the party responsible for the delivery cannot be held liable for breaching the contract. This is a fundamental principle in contract law, recognizing that certain disasters can disrupt the contractual relationship because they impede the intended actions agreed upon by the contracting parties.

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