Reference no: EM133191738 , Length: 3 pages

Impossibility of Performance
After a contract has been made, supervening events (such as a fire) may make performance impossible in an objective sense. This is known as impossibility of performance (A doctrine under which a party to a contract is relieved of his or her duty to perform when performance becomes impossible or totally impracticable (through no fault of either party).) and can discharge a contract. The doctrine of impossibility of performance applies only when the parties could not have reasonably foreseen, at the time the contract was formed, the event that rendered performance impossible. Performance may also become so difficult or costly due to some unforeseen event that a court will consider it commercially unfeasible, or impracticable, as will be discussed later in the chapter.
Objective impossibility ("It can't be done") must be distinguished from subjective impossibility ("I'm sorry, I simply can't do it"). An example of subjective impossibility occurs when a party cannot deliver goods on time because of freight car shortages or cannot make payment on time because the bank is closed. In effect, in each of these situations the party is saying, "It is impossible for me to perform," not "It is impossible for anyone to perform." Accordingly, such excuses do not discharge a contract, and the nonperforming party is normally held in breach of contract.

When Performance is Impossible

Three basic types of situations may qualify as grounds for the discharge of contractual obligations based on impossibility of performance:

Question 1. When one of the parties to a personal contract dies or becomes incapacitated prior to performance.

Question 2. When the specific subject matter of the contract is destroyed.

Question 3. When a change in law renders performance illegal.

Attachment:- Impossibility of Performance.rar