For supervening impossibility to apply, the following conditions must be met:
1. The impossibility must be objective and not merely subjective. This means that it must be impossible for anyone to perform the contract, not just the party seeking to be discharged.
2. The impossibility must be total, not partial. This means that the entire contract must be impossible to perform, not just a particular aspect of it.
3. The impossibility must occur after the contract is formed. If the impossibility existed at the time the contract was formed, it is considered a mistake, and the contract is voidable.
Examples:
* A contract to sell a specific house is discharged if the house is destroyed by fire before the closing date.
* A contract to transport goods is discharged if the goods are lost at sea.
* A contract to provide entertainment for a party is discharged if the entertainer becomes ill.
Consequences:
When a contract is discharged due to supervening impossibility, the parties are released from their obligations. Any money that has been paid under the contract must be refunded, and neither party is entitled to damages from the other.
Exceptions:
There are a few exceptions to the doctrine of supervening impossibility.
- Force Majeure Clause: Many contracts contain a force majeure clause, which excuses a party from performance in the event of a supervening impossibility.
- Impracticability: In some cases, a contract may be discharged due to impracticability, even if it is not impossible to perform.
Conclusion:
Supervening impossibility is a legal doctrine that can discharge a contract when performance becomes impossible due to events beyond the control of the parties. Courts carefully examine the specific facts and circumstances of each case to determine if the doctrine applies.