The doctrine of impossibility of performance states that if an unforeseen event occurs that makes it impossible for someone to fulfil their contractual obligations, they may be excused from their responsibilities. This could include events beyond their control, such as natural disasters or changes in the law. Essentially, it allows them to say, “I intended to fulfil my promise, but circumstances arose that made it impossible.”
The impossibility-of-performance doctrine is a principle that grants a party the ability to terminate a contract if circumstances beyond their control have rendered it impossible to fulfil their obligations. This differs from frustration or impracticability, which may make performance more challenging but not entirely unattainable. For instance, a construction company enters into a contract to construct a new office building for a client. However, a natural disaster such as a hurricane or earthquake devastates the construction site, rendering it impossible for the company to complete the project. In such a scenario, the impossibility-of-performance doctrine would enable the construction company to be released from the contract without incurring any penalties. This example demonstrates how circumstances beyond a party’s control can render the fulfilment of their contractual obligations impossible. The occurrence of a natural disaster, in this case, was an unforeseeable event that made it unfeasible for the construction company to finish the project. The impossibility-of-performance doctrine acknowledges that parties should not be held accountable for events that are beyond their control.
The impossibility-of-performance doctrine is a legal principle that excuses a party from performing their contractual obligations when it becomes objectively impossible to do so.
Impossibility can arise from unforeseen events such as natural disasters, government regulations, or the death or incapacity of a key person necessary for performance.
No, the doctrine only applies when the impossibility was not foreseeable at the time the contract was formed and when the party seeking to be excused from performance did not cause the impossibility.
No, financial hardship alone does not qualify as impossibility under this doctrine. The event must be truly unforeseeable and make performance objectively impossible.
The party should notify the other party as soon as possible and provide evidence of the impossibility. It is also advisable to seek legal counsel to navigate the situation.
Yes, parties can include a provision in the contract that waives the application of the impossibility-of-performance doctrine in certain circumstances.
Yes, if performance becomes temporarily impossible, the party may be excused from performance for the duration of the impossibility.
No, the doctrine only applies when performance is objectively impossible, not just more difficult or costly.
Yes, if a party is sued for non-performance, they can raise the impossibility-of-performance doctrine as a defence.
Yes, if the impossibility is permanent and makes performance completely impossible, the contract may be terminated under this doctrine.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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