In the world of contracts, it is not uncommon for situations to arise that make it impossible for one or both parties to perform their obligations as outlined in the agreement. When such situations occur, it may be necessary to discharge the contract based on the doctrine of impossibility of performance. This doctrine provides a legal basis for parties to be relieved of their contractual obligations when circumstances beyond their control make it impossible to fulfill them.

There are several situations that permit a contractual discharge by impossibility of performance. Let`s take a look at some of them:

Natural Disasters

One of the most common situations that permit a contractual discharge by impossibility of performance is when a natural disaster occurs. This could be anything from a hurricane, earthquake, or tornado to a wildfire or flood. When a natural disaster strikes, it can make it physically impossible for one or both parties to fulfill their contractual obligations. For example, if a construction company was contracted to build a new structure, but a hurricane destroyed the building site, it would be impossible for them to complete the project.

Government Actions

Another situation that could permit a contractual discharge by impossibility of performance is when a government takes action that makes it impossible for one or both parties to fulfill their obligations. For instance, if a supplier is contracted to deliver goods from one country to another, but the government imposes an embargo or trade sanctions, it would be impossible for the supplier to deliver the goods, and thus, the contract would be discharged.

Unexpected Death or Illness

Death or illness can also make it impossible for a party to fulfill their contractual obligations. For instance, if a performer is contracted to perform in a play but unexpectedly falls ill, they would not be able to fulfill their obligation. The contract could, therefore, be discharged on the grounds of impossibility of performance.

Unforeseen Circumstances

There might be unforeseen circumstances that arise that make it impossible for one or both parties to fulfill their contractual obligations. For instance, a supplier might be contracted to deliver goods, but a strike occurs, making it impossible for them to access the goods. In such a situation, the contract could be discharged as the unforeseen circumstances make it impossible for the supplier to fulfill their obligations.

In conclusion, situations that permit a contractual discharge by impossibility of performance include natural disasters, government actions, unexpected death or illness, and unforeseen circumstances. When such situations occur, it is essential to seek legal advice to help navigate the termination of the contract. It is also essential to have clear clauses in the contract that outline the circumstances under which the contract can be discharged.