Which scenario describes a situation that can terminate a contract due to inability to perform?

The scenario that correctly describes a situation that can terminate a contract due to inability to perform is centered around the implications of a home inspection revealing structural issues. When a home inspection uncovers such significant problems, it can lead to a buyer's inability to proceed with the purchase, as these issues may necessitate repairs that either the buyer or seller must address before the contract can move forward.

This inability to complete the transaction typically results in the buyer either withdrawing their offer or negotiating new terms. While the first scenario about the homeowner receiving two acceptable offers pertains to choice among offers, and the second scenario about withdrawing a counteroffer is more about the negotiation process rather than an inability to fulfill a contract, the discovery of significant structural issues poses a real barrier to the successful completion of the contract as it impacts the property’s condition and marketability.

In instances where major repairs are needed and agreed upon in the contract, such findings can lead to contract termination or renegotiation, illustrating a clear case of inability to perform based on unforeseen circumstances relating to the property itself.