Impossibility and Impracticability of Performance - Contract- CPA Exam REG

What is impossibility of performance of a contract? This video explains the concepts of impossibility and impracticability of contract performance.
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The concept of "impossibility" in contract law refers to situations where an unforeseen event renders the fulfillment of a contract objectively impossible, meaning it cannot be completed by anyone. This defense frees the affected party from their obligations under the contract. However, it's important to note that an increase in the cost of fulfilling a contract does not qualify as impossibility.

Let's explore this concept through different examples:

Example 1: Specific Manufacturing Facility

Original: Alex contracts with Phil to manufacture 1,500 wrenches in his factory, but the factory is destroyed by fire.
Rewrite: Jordan contracts with Casey to produce 2,000 custom lamps in a specific factory. An unexpected earthquake destroys the factory. Here, Casey can claim impossibility since the specified location for manufacturing is no longer available.
Example 2: General Supply Obligation

Original: Alex contracts to buy wrenches from Phil, whose warehouse is destroyed, but Phil can still fulfill the contract by buying wrenches elsewhere.
Rewrite: Jamie contracts to purchase unique handcrafted chairs from Morgan, whose workshop is damaged in a storm. Despite the damage, Morgan can still source similar chairs from other artisans to fulfill the contract. This situation does not qualify as impossibility because Morgan can still provide the chairs through alternative means.
Example 3: Destruction of the Contract's Subject

Original: Tyler's contract to repair Steve's boat is voided when the boat is destroyed by fire.
Rewrite: Riley agrees to restore a vintage car for Alex. However, the car is stolen before Riley can start the work. Here, the contract can be avoided due to the impossibility of performing the service on the non-existent car.
Example 4: Personal Service and Incapacity

Original: Dee's contract with Bob, a famous ballplayer, for autograph signing is voided due to Bob's death.
Rewrite: Sam contracts with Ava, a renowned chef, for a private cooking event. Unfortunately, Ava becomes permanently incapacitated due to an illness. Since the contract was for Ava's personal services, it can be discharged on the grounds of impossibility.
These examples illustrate how the impossibility defense operates in different scenarios, emphasizing that the impossibility must be objective and not merely due to increased difficulty or expense.




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