Question

If an act becomes impossible after the contract is executed for ________ no compensation/damages is payable.

• A. no fault of either party
• B. fault of only one party
• C. fault of promisor
• D. fault of both the parties

Answer 1

Answer: (A)

no fault of either party

• A contract to do an act, which after the contract is made, becomes impossible, or by reason of some event which the parties 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.
• 
  
• Impossibility arises due to the happening of certain events which were neither in the contemplation of the parties when they entered into the agreement nor either of the parties are responsible for causing the performance of the contract impossible.