Impossibility of performance.

Impossibility of performance.

• A. Termination of contract due to inability to perform
• B. Suspension of contract
• C. Breach of contract
• D. Mutual rescission

Answer: (A)

Impossibility of performance means that something essential to fulfilling the contract cannot be done because of events outside the parties’ control. When performance is truly impossible, the contract is discharged and ends—there’s no obligation to perform, and no breach. This is why termination of the contract due to inability to perform is the correct answer. Suspension would be a temporary delay, not a permanent discharge, and a breach occurs only if a party fails to perform when performance is possible; if it’s truly impossible, it isn’t a breach. Mutual rescission is a voluntary end by both sides, which can happen but isn’t the automatic consequence of impossibility.

Impossibility of performance means that something essential to fulfilling the contract cannot be done because of events outside the parties’ control. When performance is truly impossible, the contract is discharged and ends—there’s no obligation to perform, and no breach. This is why termination of the contract due to inability to perform is the correct answer.

Suspension would be a temporary delay, not a permanent discharge, and a breach occurs only if a party fails to perform when performance is possible; if it’s truly impossible, it isn’t a breach. Mutual rescission is a voluntary end by both sides, which can happen but isn’t the automatic consequence of impossibility.