An option to hold an offer open on a rare item is terminated by impracticability when the item is totaled through no fault of the offeror. What is the effect on the buyer's right?

• A. Yes, the buyer could demand a similar car.
• B. No, the option contract's duty to hold the offer open is discharged by impracticability.
• C. Only if the buyer accepts immediately.
• D. The seller must replace.

Answer: (B)

Impracticability can discharge an option contract when the subject matter of the deal is destroyed, making performance impossible or impracticable. In this scenario, the rare item is totaled through no fault of the offeror, so the seller cannot keep the offer open or complete the sale as contemplated by the option. Because the thing the option is tied to no longer exists, the duty to hold the offer open cannot be performed, and the option contract is discharged. The buyer cannot demand a similar car, replacement, or otherwise compel performance that the destroyed item no longer supports. The buyer’s rights under the option stop at the point of destruction; the obligation ends due to impracticability.