What does "commercial impracticability" refer to in a legal context?

"Commercial impracticability" refers to a situation where a party is excused from performing their contractual obligations due to unforeseen circumstances that make performance extremely difficult or costly, but not impossible. This doctrine recognizes that certain unexpected events can fundamentally alter the nature of the performance required under a contract, ultimately making it impractical to fulfill the terms as initially agreed.

This concept is rooted in contract law and aims to give relief to parties when an unforeseen event occurs—such as natural disasters, changes in law, or other significant disruptions—that were not anticipated or considered at the time of contract formation. Thus, when the answer highlights the excusal of performance due to these unforeseen circumstances, it aligns perfectly with the established legal principles of commercial impracticability.

In the context of this question, minor inconveniences or isolated financial losses do not rise to the level of commercial impracticability, nor does a conscious refusal to perform a contract represent this doctrine. The essence of commercial impracticability revolves around the unexpected nature of circumstances that impact the feasibility of contract performance.