Impossibility or Impracticability

Impossibility or impracticability refers to situations where fulfilling a contract becomes extremely difficult or impossible due to unforeseen events. For example, if a natural disaster destroys the subject of the contract, performance may no longer be possible. Impracticability applies when, while performance is still possible, it becomes excessively burdensome or costly compared to what was originally agreed upon. In such cases, a party may use these defenses to avoid liability or to renegotiate terms, as the fundamental basis on which the contract was formed has changed significantly.