In what situation might a seller be found excused from a contract obligation under commercial law?

A seller may be found excused from a contract obligation under commercial law in situations of commercially unreasonable performance. This concept refers to circumstances where it would be excessively burdensome or impractical for the seller to fulfill their contractual obligations due to changes in conditions that dominate the original context of the agreement. If performance becomes commercially unreasonable, it can indicate that external factors have significantly altered the feasibility of meeting contract terms as initially expected, warranting an excuse from obligation.

In commercial law, considerations such as impracticability or frustration of purpose are often evaluated alongside the reasonableness of performance. When these factors suggest that adhering to the contract as originally drafted would impose undue hardship, courts may excuse the seller from obligation. This reflects a balance between upholding contract integrity and acknowledging real-world complexities that can render performance unjustifiable.

In contrast, while customer default, supplier bankruptcy, and unforeseen market shifts may indeed create complications, they typically do not justify the same level of excuse unless they directly affect the seller's ability to perform the contract in a commercially reasonable manner.