Chapter 12

Question 1

What is impossibility?

Answer 1

After making a contract there can be circumstances that make the contract absolute, relative, or substantially more onerous

Question 2

What is absolute impossibility?

Answer 2

The contract is objectively impossible to perform. - this with generic goods is not an exception . E.G. a specific painting gets burnt

Question 3

What is partial impossibility?
Practical impossibility:

Answer 3

It is possible but causes great burdens to the debtor. Performance has become onerous that the debtor can no longer be expected to perform. Purely financial reasons do not amount to practical impossibility.

Question 4

What is moral impossibility?

Answer 4

when the debtor can’t perform without unreasonable danger to his or another’s life, a human right. EG - Owner of a factory and the employees

Question 5

What is legal impossibility?

Answer 5

Performance gets prohibited by a country’s statute

Question 6

What is an unforeseen circumstance?

Answer 6

unexpected change in circumstances makes the performance much more difficult or expensive

Question 7

If a party argues that its performance should be excused due to an unexpected change, what will the court do: (civil law)

Answer 7

1. The court will look at the clauses of the contract
2. If no clauses specify - default rules used
   France: disadvantaged party may request its counterparts to negotiate the adjustment of the contract, and if not agreed - agree on termination of the offer, ask the court for an agreement

Question 8

The difference between unforeseen circumstance and practical impossibility

Answer 8

• practical: reasonable impossible performance
• unforeseen: more difficult than expected