Abstract

This chapter discusses exemptions, impediments, hardships, and obligee’s behavior. All legal systems envisage some possibility to relieve the obligor from the obligation to pay damages after a breach of contract has occurred. However, legal systems vary in responding to these. The civil law system’s natural solutions around the absence of fault, while the common law system takes a strict liability approach. The critical distinction between impediment and hardship is that performance does not need to be impossible under hardship. Obligee’s behavior plays a vital role in questions of whether an obligor should be exempted from either its responsibility or damages for a failure to perform.

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