Impossibility of performance arises when?

Impossibility of performance arises when?

• A. An event such as an earthquake makes performance impossible and the parties rescind.
• B. The price of property increases.
• C. The contract is fully performed.
• D. The offer expires.

Answer: (A)

Impossibility of performance happens when an event makes fulfilling the contract physically impossible. An earthquake destroying the property or otherwise making transfer or delivery impossible means neither party can complete their obligation, so the contract can be discharged and the parties may rescind. The other situations don’t fit this concept: a rise in property price doesn’t prevent performance; the contract being fully performed means there’s nothing left to perform; and an offer expiring relates to formation, not the ability to perform the contract.

Impossibility of performance happens when an event makes fulfilling the contract physically impossible. An earthquake destroying the property or otherwise making transfer or delivery impossible means neither party can complete their obligation, so the contract can be discharged and the parties may rescind.

The other situations don’t fit this concept: a rise in property price doesn’t prevent performance; the contract being fully performed means there’s nothing left to perform; and an offer expiring relates to formation, not the ability to perform the contract.