What is required for the defense of impossibility of performance to apply?

What is required for the defense of impossibility of performance to apply?

• A. Subjective circumstances affecting one party
• B. Objective criteria applicable to similar situations
• C. Mutual consent of parties involved
• D. Notification of intent to breach

Answer: (B)

The defense of impossibility of performance applies when an unforeseen event occurs that makes it objectively impossible for a party to fulfill their contractual obligations. This means that the criteria for impossibility are based on an objective standard, not subjective feelings or circumstances that affect only one party. In determining whether the defense is valid, courts typically look for factors such as whether similar situations would have led to the same impossibility of performance for a reasonable party. This ensures that the defense is grounded in a broader, more universally recognized context rather than the specific subjective experiences or perspectives of the parties involved. By requiring objective criteria, the law promotes fairness and predictability in contractual relationships, allowing parties to understand when performance may be legally excused due to impossibility.

The defense of impossibility of performance applies when an unforeseen event occurs that makes it objectively impossible for a party to fulfill their contractual obligations. This means that the criteria for impossibility are based on an objective standard, not subjective feelings or circumstances that affect only one party.

In determining whether the defense is valid, courts typically look for factors such as whether similar situations would have led to the same impossibility of performance for a reasonable party. This ensures that the defense is grounded in a broader, more universally recognized context rather than the specific subjective experiences or perspectives of the parties involved. By requiring objective criteria, the law promotes fairness and predictability in contractual relationships, allowing parties to understand when performance may be legally excused due to impossibility.