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Contract law |
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Formation |
Defences |
Interpretation |
Dispute resolution |
Rights of third parties |
Breach of contract |
Remedies |
Quasi-contractual obligations |
Duties of parties |
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The doctrine [1] of impossibility or impossibility of performance or impossibility of performance of contract is a doctrine in contract law.
In contract law, impossibility is an excuse for the nonperformance of duties under a contract, based on a change in circumstances (or the discovery of preexisting circumstances), the nonoccurrence of which was an underlying assumption of the contract, that makes performance of the contract literally impossible.
For example, if Ebenezer contracts to pay Erasmus £100 to paint his house on October 1, but the house burns to the ground before the end of September, Ebenezer is excused from his duty to pay Erasmus the £100, and Erasmus is excused from his duty to paint Ebenezer's house; however, Erasmus may still be able to sue under the theory of unjust enrichment for the value of any benefit he conferred on Ebenezer before his house burned down.
The parties to a contract may choose to ignore impossibility by inserting a hell or high water clause, which mandates that payments continue even if completion of the contract becomes physically impossible.
Sometimes it is impossible to perform a contract as a result of war. [2]
Frustration usually involves impossibility of performance. [3] As to whether the non-existence of the subject matter of a contract constitutes (initial) impossibility of performance, see McRae v Commonwealth Disposals Commission. [4] Cf. Res extincta.
A contract may be frustrated by impossibility of performance. [5]
In 1997, Downes said that impossibility and impracticability were separate in England and Wales, and that impracticability was not usually found to result in frustration. [6]
The English case that established the doctrine of impossibility at common law is Taylor v Caldwell. [7]
Wilkins and Davies Construction Co Ltd v Geraldine Corporation [1958] NZLR 985 is relevant. [8]
A contract may be ended by supervening impossibility of performance. [9]
At common law, for the defence of "impossibility" to be raised performance must not merely be difficult or unexpectedly costly for one party, there must be no way for it to actually be accomplished. However, in the United States it is beginning to be recognized that "impossibility" under this doctrine can also exist when the contemplated performance can be done but only at an excessive and unreasonable cost, i.e., commercial impracticability. [10] On the other hand, some US sources see "impossibility" and impracticability as being related but separate defences.
The Planning Act 1990 is an act of the Parliament of the United Kingdom that altered the laws on granting of planning permission for building works, notably including those of the listed building system in England and Wales.
In contract law, force majeure is a common clause in contracts which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, epidemic, or sudden legal change prevents one or both parties from fulfilling their obligations under the contract. Force majeure often includes events described as an act of God, though such events remain legally distinct from the clause itself. In practice, most force majeure clauses do not entirely excuse a party's non-performance but suspend it for the duration of the force majeure.
Frustration of purpose, in law, is a defense to enforcement of a contract. Frustration of purpose occurs when an unforeseen event undermines a party's principal purpose for entering into a contract such that the performance of the contract is radically different from performance of the contract that was originally contemplated by both parties, and both parties knew of the principal purpose at the time the contract was made. Despite frequently arising as a result of government action, any third party or even nature can frustrate a contracting party's primary purpose for entering into the contract. The concept is also called commercial frustration.
In the conflict of laws, the validity and effect of a contract with one or more foreign law elements will be decided by reference to the so-called "proper law" of the contract.
Taylor v Caldwell is a landmark English contract law case, with an opinion delivered by Mr Justice Blackburn which established the doctrine of common law impossibility.
South Africa has a 'hybrid' or 'mixed' legal system, formed by the interweaving of a number of distinct legal traditions: a civil law system inherited from the Dutch, a common law system inherited from the British, and a customary law system inherited from indigenous Africans. These traditions have had a complex interrelationship, with the English influence most apparent in procedural aspects of the legal system and methods of adjudication, and the Roman-Dutch influence most visible in its substantive private law. As a general rule, South Africa follows English law in both criminal and civil procedure, company law, constitutional law and the law of evidence; while Roman-Dutch common law is followed in the South African contract law, law of delict (tort), law of persons, law of things, family law, etc. With the commencement in 1994 of the interim Constitution, and in 1997 its replacement, the final Constitution, another strand has been added to this weave.
The doctrine of impracticability in the common law of contracts excuses performance of a duty, where the said duty has become unfeasibly difficult or expensive for the party who was to perform.
An impossibility defense is a criminal defense occasionally used when a defendant is accused of a criminal attempt that failed only because the crime was factually or legally impossible to commit. Factual impossibility is rarely an adequate defense at common law. This is not to be confused with a 'mistake of fact' defense, which may be a defense to a specific intent crime like larceny.
Great Peace Shipping Ltd v Tsavliris (International) Ltd [2002] EWCA Civ 1407 is a case in English contract law which investigates when a common mistake within a contractual agreement will render it void.
Peters, Flamman and Company v Kokstad Municipality, decided by Solomon JA, is an important case in South African contract law, specifically in the area of termination and supervening impossibility of performance.
Graham Glover is an associate professor in the Faculty of Law at Rhodes University and the youngest-ever editor of the South African Law Journal. He teaches courses in the law of contract, sale, insurance, unjustified enrichment and also part of a course on Legal Skills.
Plascon-Evans Paints Ltd v Van Riebeeck Paints (Pty) Ltd is an important case in South African law, particularly in the area of civil procedure and trade marks.
Barclays Western Bank Ltd v Pretorius is an important case in South African law, particularly in the area of civil procedure; it was an appeal of Western Bank Ltd v Pretorius.
Western Bank Ltd v Pretorius is an important case in South African law, particularly in the area of civil procedure.
Benlou Properties (Pty) Ltd v Vector Graphics (Pty) Ltd is an important case in the South African law of lease.
In Carelse v Estate De Vries, an important case in South African succession law, Carelse was seduced, on the promise of marriage, by the deceased. Carelse and the deceased continued their relationship, which produced seven children, before the deceased died intestate.
In Ex Parte Estate Davies, an important case in South African succession law, the testator bequeathed £2000 in his will to a person who was not named in the will itself, but on a document which was in a sealed envelope given to his attorney. This document was not signed by witnesses.
The Redundancy Payments Act 1965 was an act of the Parliament of the United Kingdom that introduced into UK labour law the principle that after a qualifying period of work, people would have a right to a severance payment in the event of their jobs becoming economically unnecessary to the employer. The functions of the redundancy payment were to internalise the social cost of unemployment to the employer, make employers think more carefully before making people redundant, to compensate the employee for the loss of a job, and to provide a minimum sum of money for the employee in case future employment could not immediately be found. Together with the requirement of statutory minimum notice in the Contracts of Employment Act 1963, and the right to a fair dismissal first found from the Industrial Relations Act 1971, redundancy pay forms one of the three pillars of rights in dismissal.
Part performance is an equitable doctrine in New Zealand law.
The Bills of Exchange Act 1908 is an Act of the New Zealand Parliament which regulates bills of exchange and related promissory notes. It is based on the Imperial Bills of Exchange Act 1882 (UK). The Act also applies to the Realm of New Zealand, which includes the Cook Islands and Niue as well as New Zealand.