Question

A contract is treated as discharged due to supervening impossibility if the act becomes unlawful or impossible _________.

• A. after execution of the contract by both the parties.
• B. before execution of the contract
• C. after fulfilment of obligation by one party but before other party.
• D. None of these

Answer 1

The correct option is A after execution of the contract by both the parties.

A contract to do an act, which after the contract is made, becomes impossible, or by reason of some event which the promisor could not prevent, becomes void when the act becomes impossible or unlawful. This is called “Supervening Impossibility”, i.e. impossibility arising subsequent to the formation of the contract. In such a case the contract will be void as soon as such events make the performance of the contract impossible.