While the landlord could technically rent out the space, the lessee’s fundamental purpose for the lease—holding the event—is frustrated, potentially leading to contract termination. Furthermore, parties are often encouraged to mitigate their losses.
Lease Termination Due to an Impossible Event
This doctrine addresses scenarios where an obligation becomes objectively unachievable due to unforeseen events, rather than a party’s simple refusal or inability to pay. Here, the physical performance of the contract may be possible, but the primary reason for entering the agreement has been destroyed.
Categories of Impossibility The application of this doctrine is generally divided into distinct categories that courts examine closely. It serves as a critical escape valve in contract law, acknowledging that the rigid enforcement of promises can lead to unjust outcomes when circumstances fundamentally change.
Lease Termination Due to an Impossible Event
A classic example is a contract to lease a specific venue for an event, only for the venue to be destroyed by a flood. For instance, if a seller contracts to deliver a unique piece of artwork, but the artwork is destroyed in a fire before delivery, the contract is objectively impossible to perform.
More About Impossibility of performance of contract
Looking at Impossibility of performance of contract from another angle can help expand the discussion and give readers a second clear paragraph under the same section.
More perspective on Impossibility of performance of contract can make the topic easier to follow by connecting earlier points with a few simple takeaways.
