supervening illegality
supervening illegality, defined:
a change in the law that invalidates an agreement. A supervening illegality applies to contracts, legal at the time of their formation, whose subject matter was subsequently outlawed.
supervening illegality, as it might be used:
The appellant contended the trial court erred in finding that performance under the letter of credit was excused because of supervening illegality.
An example of supervening illegality:
Ogden works for an electronics supply firm that sells components globally. The company has an existing contract with a client based in a country that is at the center of an international crisis. As a sanction against the country, the United States government places an embargo on all exports to that country by U.S. firms. Because of the supervening illegality, the supply contract with the client is invalidated.
|
|
|
Clear-Point Law Dictionary
