Introductory Business Law CLEP Exam 2026 – Your All-in-One Guide to Master the Test!

Question: 1 / 400

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

Rescission

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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Fraud in the inducement

Alteration of contract terms

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