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Business Environment and Law-Performance And Discharge Of Contracts

Exceptions To The Principle Of Supervening Impossibility - Performance And Discharge Of Contracts

   Posted On :  07.05.2018 11:13 pm

Following are some of the circumstances in which non-performance of a contract was held not to be excused.

Exceptions To The Principle Of Supervening Impossibility
 
 

Impossibility As A Rule Is No Excuse For Non-Performance:

 
 
Following are some of the circumstances in which non-performance of a contract was held not to be excused.
 
Difficulty of performance: If a contract becomes difficult to perform but not impossible the promisor would not be discharged on that account.
Commercial Impossibility would not discharge of a contract. A contract would not be deemed to be impossible because it does not remain profitable to the promisor or would make the promisor to incur losses.
Action of a third party: If a man chooses to answer for the voluntary act of a third person, there is no reason in law or justice why he should not be held for his inability to procure that act.
Strikes, lock-outs, civil disturbances and riots do not discharge a contract unless there is a clause in the contract to that effect.
Partial impossibility: Where a contract is entered into for more than one purpose, the contract would not become impossible, if one of the objects has become impossible to achieve.
 

Consequences of Supervening Impossibility

 
 
Supervening impossibility makes a contract void. The parties are discharged from their respective obligations under the contract (Sec. 65). The party who has received any advantages under it should restore it to the other party.

 

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