LEGL 2700 Practice Exam 2025 – Complete Study Resource

Impossibility of performance refers to situations where a party is unable to fulfill their contractual obligations due to unforeseen circumstances that prevent them from performing. One clear example is death or grave sickness, as these situations can physically prevent someone from completing tasks or duties outlined in a contract. When a key party to the contract dies or becomes gravely ill, it creates a scenario where their performance becomes impossible, thus excusing them from liability under the doctrine of impossibility.

In contrast, changes in market conditions, contractual disagreements, and increased operational costs typically do not qualify as impossibility of performance. Changes in market conditions might render performance less profitable but do not prevent it from being carried out. Contractual disagreements indicate disputes over the terms or obligations, rather than an inability to perform. Increased operational costs, while potentially burdensome, do not render performance impossible; they might simply make it less desirable or financially viable. Understanding these distinctions is key in determining when the impossibility of performance applies in legal contexts.