Impossibility

Definition

Impossibility refers to a legal doctrine that excuses a party from fulfilling their contractual obligations when an unforeseen event renders the performance of the contract impossible. This concept is crucial in the realm of breach of contract and remedies, as it addresses scenarios where external circumstances prevent a party from meeting their contractual duties, potentially leading to the discharge of the contract.

5 Must Know Facts For Your Next Test

1. Impossibility can be categorized into two types: subjective impossibility, where a specific party cannot perform, and objective impossibility, where no one could perform under the circumstances.
2. Common examples of impossibility include natural disasters, death of a key party, or changes in law that make performance illegal.
3. For impossibility to be a valid defense, the unforeseen event must have occurred after the contract was formed and must not have been foreseeable at the time of agreement.
4. Parties seeking to use impossibility as a defense must provide evidence that the event was truly beyond their control and not due to their own fault.
5. The doctrine of impossibility does not apply if performance is merely more difficult or expensive; there must be a total inability to perform.

Review Questions

• How does the doctrine of impossibility differ from other defenses like frustration of purpose?
  • Impossibility and frustration of purpose both serve to excuse performance under a contract, but they address different situations. Impossibility occurs when an unforeseen event makes it impossible for any party to perform their obligations, while frustration of purpose arises when an event undermines the reason for entering into the contract. Understanding this distinction is crucial because it affects which legal doctrine applies and what kind of remedies may be available.
• In what scenarios might a party successfully claim impossibility, and what burden do they bear in proving their case?
  • A party might successfully claim impossibility in scenarios involving natural disasters, death of an essential party, or changes in law that prohibit contract performance. They bear the burden of proving that the event was unforeseeable and outside their control, as well as demonstrating that it rendered performance completely impossible. If they can establish these points, they may be excused from their obligations under the contract.
• Evaluate the implications of the impossibility doctrine on contract law and its effect on business relationships.
  • The impossibility doctrine plays a significant role in contract law by providing parties with relief when unforeseen events occur that prevent them from fulfilling their agreements. This protection encourages parties to enter into contracts with greater confidence, knowing they won’t be penalized for events beyond their control. However, it also emphasizes the need for careful drafting of contracts, including clauses like force majeure, which can clarify expectations and limit disputes over non-performance due to unforeseen circumstances.

Related terms

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

Frustration of Purpose: A doctrine that allows a party to be excused from performance due to a significant change in circumstances that undermines the contract's intended purpose.

Breach of Contract: The violation of a contractual obligation by one party, which can result in legal remedies or damages for the other party.