Impossibility of Performance

Impossibility of performance refers to a situation where a party in a contract cannot fulfill their obligations due to unforeseen circumstances beyond their control. This can happen because of events like natural disasters, legal changes, or the destruction of the subject matter of the contract. Essentially, it means that fulfilling the terms of the agreement is no longer feasible. In such cases, the affected party may be excused from their contractual duties, as the inability to perform was not due to their fault or negligence. It protects parties from unfair liabilities when unpredictable events occur.