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Why did the Kingdom of Sardinia agree to an armistice with Napoleon in 1796?

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Napoleon I
French Revolutionary wars Bonaparte on the Bridge at Arcole, 17 November 1796, oil on canvas by Antoine-Jean Gros, 1796; in the Versailles Museum.

The Kingdom of Sardinia agreed to the Armistice of Cherasco in 1796 primarily because its military forces had become demoralized and its treasury was exhausted following the intense French Revolutionary wars.1

While the kingdom had experienced some military successes against the French in previous years, the 1796 campaign led by Napoleon Bonaparte placed the state in an untenable position. Faced with the collapse of his army's effectiveness and a lack of financial resources to continue the conflict, King Victor Amadeus III was forced to accept the armistice and the subsequent Treaty of Paris. Under these terms, the kingdom was compelled to cede the territories of Savoy and Nice to France and grant the French army free passage across Piedmont.1