Introductory Business Law CLEP Prep Practice Exam

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Which of the following is a defense to a breach of contract?

  1. Rescission

  2. Impossibility of performance

  3. Fraud in the inducement

  4. Alteration of contract terms

The correct answer is: Impossibility of performance

A possible explanation could be A: Rescission is the act of voiding or canceling a contract. While it may be an applicable defense in certain situations, it is not specifically a defense to a breach of contract. Therefore, this option is incorrect. C: Fraud in the inducement is a type of fraud that occurs when one party intentionally misleads the other party into entering a contract. While it may provide grounds for the contract to be voided, it is not a direct defense to a breach of contract. Hence, this option is also incorrect. D: Alteration of contract terms refers to changing or modifying the terms of a contract. This would not serve as a defense to a breach of contract, but rather a potential cause of action for the breach. Therefore, this option is incorrect. B: The correct answer is impossibility of performance. This defense applies when

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