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Understanding Supervening Impossibility in Contract Law
Definition & Meaning
Supervening impossibility refers to a situation where a party is unable to fulfill their contractual obligations due to unforeseen circumstances that arise after the contract has been formed. This type of impossibility occurs when the promisor's performance is due and is typically caused by events that were not anticipated and for which the promisor is not responsible. Understanding supervening impossibility is crucial, as it can affect the enforceability of contracts and the obligations of the parties involved.
Table of content
Legal Use & context
This term is commonly used in contract law, where it serves as a defense for a party unable to perform their duties due to unforeseen events. Supervening impossibility can arise in various legal contexts, including civil law and commercial contracts. Users can manage some aspects of this issue by utilizing legal templates from US Legal Forms, which are drafted by qualified attorneys to help navigate the complexities of contract law.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
(hypothetical example) A contractor agrees to build a home but is unable to do so because a natural disaster, such as a flood, destroys the construction site after the contract is signed. In this case, the contractor may claim supervening impossibility as a defense against failing to complete the project.
(hypothetical example) A musician contracts to perform at a venue but becomes seriously ill just before the performance date, making it impossible for them to perform. This situation may also qualify as supervening impossibility.
State-by-state differences
Examples of state differences (not exhaustive):
State
Key Differences
California
California courts may apply a broader interpretation of supervening impossibility, considering various unforeseen events.
New York
In New York, the burden of proof lies on the party claiming supervening impossibility to demonstrate that the event was truly unforeseen.
Texas
Texas law may require specific contractual language to invoke supervening impossibility effectively.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Frustration of Purpose
A situation where a contract's main purpose is undermined by unforeseen events.
Frustration focuses on the contract's purpose being defeated, while supervening impossibility concerns the ability to perform.
Force Majeure
Contractual clause that relieves parties from liability due to extraordinary events.
Force majeure is often predetermined in contracts, whereas supervening impossibility arises unexpectedly.
Common misunderstandings
What to do if this term applies to you
If you find yourself unable to fulfill a contract due to unforeseen circumstances, consider the following steps:
Document the event that caused the impossibility and gather any relevant evidence.
Review your contract for any clauses related to supervening impossibility or force majeure.
Consult with a legal professional to understand your rights and obligations.
Explore US Legal Forms for templates that may help you communicate with the other party effectively.
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