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Arthur Murray, Inc., and Parker entered a series of contracts under which Arthur Murray agreed to teach Parker how to dance. Under the terms of each agreement, refunds were impossible, and the lessons could not be canceled. After the contracts were entered, Parker suffered a permanent disability that made it physically impossible for him to dance.

When Arthur Murray refused to refund any part of Parker's money, he sued to rescind the contracts on grounds of impossibility. Arthur Murray claimed that the non-refund clause must be upheld by the court. Was Arthur Murray correct? Explain.

Parker v. Arthur Murray, Inc., 295 N.E.2d 487 (IL).

Management Theories, Management Studies

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