Doctrine of Impossibility

Definition

The doctrine of impossibility is a legal principle that excuses a party from fulfilling their contractual obligations when an unforeseen event occurs, making performance impossible. This doctrine is rooted in the idea that contracts should be enforceable only when the circumstances surrounding their execution are within the control of the parties involved. It is essential for understanding how external factors can affect the enforceability of agreements and provides a framework for evaluating when obligations can be deemed unfeasible.

5 Must Know Facts For Your Next Test

1. The doctrine of impossibility applies only when the performance of a contract becomes objectively impossible, not merely more difficult or expensive.
2. It typically covers situations such as natural disasters, death of a party in personal service contracts, or changes in law that make performance illegal.
3. For a party to successfully invoke this doctrine, they must prove that the event causing impossibility was unforeseen and not due to their own fault.
4. This doctrine is often contrasted with the doctrine of frustration of purpose, which focuses on the reason for entering into the contract rather than performance itself.
5. The courts generally require clear evidence of impossibility, and mere inconvenience or increased cost is insufficient to establish this defense.

Review Questions

• How does the doctrine of impossibility differentiate between subjective and objective impossibility in contract law?
  • The doctrine of impossibility distinguishes between subjective and objective impossibility by focusing on whether performance can be achieved by any means. Objective impossibility occurs when no one could fulfill the contractual obligations due to circumstances beyond control, while subjective impossibility refers to situations where an individual party finds it difficult but not impossible to perform. Only objective impossibility can excuse a party from liability under this doctrine, making it crucial for parties to demonstrate that performance is truly unattainable.
• What role do external events play in invoking the doctrine of impossibility, and how do courts evaluate these events?
  • External events play a critical role in invoking the doctrine of impossibility, as they must be unforeseeable and make performance of the contract genuinely impossible. Courts evaluate these events by assessing whether they were beyond the control of the parties involved and if they directly impacted the ability to perform contractual duties. Examples like natural disasters or legislative changes serve as key considerations, as courts look for clear evidence that these events created a situation where performance was no longer feasible.
• Evaluate how the application of the doctrine of impossibility impacts contract enforceability and party expectations in commercial agreements.
  • The application of the doctrine of impossibility significantly impacts contract enforceability by introducing a safety valve for parties affected by unforeseen circumstances, thus reshaping expectations in commercial agreements. When this doctrine is invoked successfully, it protects parties from liability and encourages fair dealings by acknowledging that some events are simply out of their control. This reinforces the understanding that while contracts are binding, they are not absolute in all scenarios, prompting parties to consider risk management strategies and include clauses like force majeure to safeguard their interests.

Related terms

Force Majeure: A clause in contracts that frees both parties from liability or obligation when an extraordinary event or circumstance beyond their control prevents one or both of them from fulfilling their contractual obligations.

Frustration of Purpose: A legal doctrine that allows a party to void a contract when the primary purpose of the agreement is destroyed by an unforeseen event.

Material Breach:

A significant violation of a contract that permits the other party to terminate the agreement and seek damages.