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Contract

Act
Ms. Kalsoom Nisar
3.Discharge by Impossibility of
Performance
 A contract is said to be discharged when it become
impossible.
 56. An agreement to do an act impossible in itself is void.

How impossible contract can be discharged when it is


automatically impossible to perform?
As regard the performance, impossible contracts are from the
very beginning impossible to perform and so for the reason
void ab initio.

In this case impossibility is inherent in transactions.


Two types of impossibility
 1. Initial Impossibility
 2. Subsequent Impossibility

 A) Initial Impossibility
 When impossibility exist at the time of
formation of a contract.
 Two maxims:
 1. Lex non cogit ad impossibilia est
 Means: Law does not recognize what is
impossible.
A) Initial Impossibility

 B) Impossibilium nulla obligato est


 Means : what is impossible does not create
obligations.
 56: AGREEMENT TO DO IMPOSSIBLE ACTS
IS VOID.
 Impossibility may be known or unknown to the
parties. In both cases agreement is void.
Effect of known impossibility
 Where one person has promised to do something
which he knew, or, with reasonable diligence,
might have known, and which the promisee did not
know to be impossible or unlawful, such promisor
must make compensation to such promisee for any
loss which such promisee sustains through the
non-performance of the promise.
Illustration
 A contracts to marry B, being already married
to C, and being forbidden by the law to which
he is subject to practice polygamy. A must
make compensation to B for the loss caused
to her by the non-performance of his promise.
2. Subsequent/ supervening
impossibility
 After the formation of a contract

56(2) Contract to do act afterwards becoming


impossible or unlawful
 A contract to do an act which, after the contract is
made, becomes impossible, or, by reason of some
event which the prosmissor could not prevent,
unlawful, becomes void when the act becomes
impossible or unlawful.
Illustration
A contracts to take in cargo for B at a
foreign port. A's Government
afterwards declares war against the
country in which the port is situated.
The contract becomes void when war
is declared.
Condition for the Subsequent
impossibility
 1. Actsshould have become impossible
 2. impossibility must be caused by circumstances
which are beyond the control of a parties
 3. impossibility should not be self induced
 4. impossibility should not be created by
Negligence of Party
Cases where Doctrine of Supervening
impossibility applies

 1.Destruction of Subject Matter


Taylor Vs. Caldwell (1863)
A music Hall was let for series of music
concert on certain days. The Hall was burnt
down before the date of first concert. The
agreement turns void.
2. Death or Personal Incapacity
 Roboinson vs. Davison ( 1871)
An artist undertook to sing on
particular day. On the day in question
the defendant was unable to perform
owing to illness. It was held that the
artist was not liable to damaged.
3. Change of Law
 Re. Shipton, Anderson and Co. (1915)

 A agreed to sell to B a specific quantity of wheat


lying in his godown. Before the delivery to be made ,
the was sealed by the Government and it
Requisitioned the whole quantity of wheat under the
statutory powers. It was held that contract get
discharged and the delivery of wheat becomes
impossible.
4. Declaration of War
 A contracts to take in cargo for B at a
foreign port. A's Government afterwards
declares war against the country in which
the port is situated. The contract becomes
void when war is declared.
5. failure of Pre-condition
 When certain things are necessary for the
performance of a contract ceased to exist, the
contract becomes void on the basis impossibility
of performance.
 Case: Krell vs Hnery (1903)
 A contract was to hire a late for viewing the
coronation procession of a king. the procession had
be cancelled on account of kings' illness. Hirer not
need to pay rent amount of flat.

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