An example of a contract terminated due to inability to perform would be one in which what situation occurs?

The situation in which a contract is terminated due to inability to perform typically refers to a fundamental issue that prevents one party from fulfilling their obligations under the contract. In the case of a seller contracting for the sale of the entire property without the consent of a joint tenant, the seller essentially lacks the legal authority to proceed with the sale because a joint tenant has rights to the property that must be respected.

When multiple owners hold property as joint tenants, each owner has an equal right to sell or transfer their interest. Without the consent of all joint tenants, any contract made by one tenant regarding the entire property can be deemed invalid. Consequently, this lack of authority renders the contract unenforceable, leading to its termination due to the seller’s inability to perform the obligations set forth in the agreement.

In real estate transactions, all parties must have the authority and capacity to enter into a contract for the agreement to be valid and enforceable. This situation exemplifies a clear barrier to contract performance, thereby justifying termination based on inability to perform.