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Chapter 12

IMPOSSIBILITY, IMPRACTICABILITY, AND FRUSTRATION


ChapterScope

This chapter covers situations where, after the formation of a contract, unexpected events occur which affect the feasibility or possibility of a party's performance and cause the parties to be excused from continued performance under the contract. Key concepts:

  • Impossibility: If performance by a party has been made literally impossible by the occurrence of unexpected events, then the contract may be discharged. Common situations where a party's performance is rendered impossible include:
    • Destruction or unavailability of the subject matter of the contract;
    • Death or incapacitating illness of a party;
    • Supervening illegality (where a contract is legal when it is entered into, but a subsequent change in the law renders its performance illegal).

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