Understanding the Impossibility-of-Performance Doctrine in Contract Law

Definition & Meaning

The impossibility-of-performance doctrine is a legal principle that allows a party to be excused from fulfilling a contract when unforeseen circumstances make performance impossible. This typically applies in situations where the contract's execution depends on the existence of a specific person or thing. If that person or thing ceases to exist, the party may be relieved from their obligations.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A concert promoter contracts a famous singer for a performance. If the singer unexpectedly passes away before the concert, the promoter may be excused from fulfilling the contract due to impossibility of performance.

Example 2: A construction company agrees to build a structure, but a natural disaster destroys the site. The company may argue that the circumstances make it impossible to perform the contract as agreed. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State Key Differences
California Recognizes impossibility as a defense but requires clear evidence of the unforeseen event.
New York Allows for impossibility but emphasizes the need for a specific, unavoidable event.
Texas Similar to New York, but also considers the allocation of risk in the contract.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

What to do if this term applies to you

If you believe the impossibility-of-performance doctrine applies to your situation, consider the following steps:

  • Review your contract to identify any clauses regarding unforeseen circumstances.
  • Gather evidence of the event that caused the impossibility.
  • Consult with a legal professional to assess your options and determine if you can invoke this doctrine.
  • Explore US Legal Forms for templates that may assist in drafting necessary documents or agreements.

Quick facts

  • Typical fees: Varies by attorney and complexity of the case.
  • Jurisdiction: Applicable in all states, but interpretations may vary.
  • Possible penalties: None for the party excused from performance; however, they may face other legal consequences depending on the contract terms.

Key takeaways

Frequently asked questions

It is a legal principle that allows a party to be excused from fulfilling a contract when unforeseen circumstances make performance impossible.