Image for Possibility of performance

Possibility of performance

Possibility of performance refers to whether a contract's terms can realistically be fulfilled. In legal terms, for a contract to be enforceable, the actions required by both parties must be possible. If something makes it impossible—like a law that prohibits the action or a significant change in circumstances—the contract may be considered void or unenforceable. In simple terms, for a legal agreement to hold up in court, both sides must be able to do what they agreed to do without breaking any laws or facing insurmountable obstacles.