Legal Definitions - impossibility-of-performance doctrine

Definition: The impossibility-of-performance doctrine is a principle that allows a party to be released from a contract if circumstances beyond their control have made it impossible to fulfill their obligations. This is different from frustration or impracticability, which may make performance more difficult but not completely impossible.

Example: A construction company signs a contract to build a new office building for a client. However, a natural disaster such as a hurricane or earthquake destroys the construction site, making it impossible for the company to complete the project. In this case, the impossibility-of-performance doctrine would allow the construction company to be released from the contract without penalty.

Explanation: The example illustrates how circumstances beyond a party's control can make it impossible to fulfill their contractual obligations. In this case, the natural disaster was an unforeseeable event that made it impossible for the construction company to complete the project. The impossibility-of-performance doctrine recognizes that parties should not be held responsible for events that are beyond their control.