When a contract becomes impossible or impractical to perform, which remedy would a businessperson prefer--rescission or reformation? Why?

It depends upon the circumstances. If it is a matter of
impracticality; reformation of the contract can be accomplished with minimum loss to
either party. If performance is impossible, then recission is probably the only
alternative. Recission, however, is not always without cost. If the other party to the
contract is unwilling to accept recission; he/she may seek to enforce the contract by
legal action.

Example: A signs a contract to purchase an
agreed upon piece of real estate. A soon learns that he will be unable to meet the full
purchase price, but may be able to pay a lesser price. The seller may elect to accept
the lesser price and thereby save the deal. However, if A simply seeks to rescind the
contract without consideration, he has defaulted, and the seller may sue for damages,
or, in the case of real estate, sue for specific performanc.