Contracts · Exam Prep

Impossibility Impracticability Exam Prep

This guide covers the key concepts and rules surrounding impossibility and impracticability in contract law, focusing on exam preparation.

Overview

In contract law, the doctrines of impossibility and impracticability provide defenses against the performance of contractual obligations when unforeseen circumstances render them exceedingly difficult or impossible to fulfill. Impossibility arises when an unforeseen event prevents a party from performing their contractual duties, while impracticability acknowledges circumstances that make performance unreasonably burdened but not impossible. Understanding the distinctions between these concepts is crucial, as well as the underlying factors that courts consider in determining whether a party is excused from performance.

Students should be familiar with the elements required to establish a claim of impossibility or impracticability, including the unforeseeability of the event, the condition of the performance at the time of contract formation, and the specific contractual language that might limit the applicability of these doctrines. Awareness of case law and practical examples will help solidify these concepts, enabling students to accurately apply the law to hypothetical scenarios presented in exams.

Key Rules to Memorize
  1. Impossibility arises when a supervening event makes performance objectively impossible.
  2. Impracticability refers to situations where performance is possible but excessively difficult or costly.
  3. The event causing impossibility or impracticability must be unforeseen at contract formation.
  4. A party must make reasonable efforts to perform before claiming impracticability.
  5. Contractual language may limit or exclude the application of impossibility or impracticability doctrines.
Common Issue Spotters

A contract to deliver goods is interrupted due to a natural disaster that destroys the goods.

The performance of a contract is hindered by a sudden change in law affecting the legality of the contract.

A unique artist becomes incapacitated, making it impossible to fulfill a contract for an original artwork.

Model Answer Approach

In addressing an exam question on impossibility or impracticability, start by identifying the contract in question and the specific obligations of the parties involved. Then, analyze whether a supervening event has occurred that either made performance impossible or made it impracticable. Be sure to delineate the distinctions - for impossibility, it must be shown that performance is absolutely impossible, whereas impracticability focuses on the undue burden placed on the performing party.

Next, evaluate whether the event was foreseeable at the time the contract was formed, as this is crucial for establishing a defense under these doctrines. Discuss any reasonable steps that the party has taken to mitigate the effects of the unforeseen event, and analyze how the language of the contract itself might impact the applicability of these defenses.

Conclude by summarizing the reasons why the party would either be excused from performance or not, citing relevant case law where appropriate to support your reasoning. Clarity and organization will enhance the effectiveness of your answer, making it easier for the examiner to follow your analysis.

Mnemonics
  • P.I.N. (Performance Impossible or Not) to remember the core focus of impossibility and impracticability.
Common Pitfalls
  • Confusing impossibility with impracticability; ensure you understand the distinction.
  • Failing to address the foreseeability of the event impacting performance.
  • Neglecting to consider the contract’s specific language that might exclude these defenses.

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