Surviving Impossibility

When performance of a promise becomes impossible or illegal by occurrence of an unexpected, event or a change of circumstances beyond the contemplation of parties, is called supervening impossibility. In case of supervening impossibility the contract becomes void.

Circumstances:  A party to a contract may be excused from the performance of his promise on the ground of ‘supervening impossibility’ under the Indian Contract Act, 1872 in the following circumstances.

(a)     Accidental destruction of the subject matter of the contract:  If the subject matter of the contract is destroyed by an accident both the parties are excused from the performance of the contract.

(b)     Non-existence or non occurrence of a particular state of things:  Non-existence or non occurrence of a particular state of things of the contract exempts the parties from the performance of the contract.

(c)     Incapacity to perform a contract of personal services:  In case of contract of personal service, disability or incapacity to perform, caused by the act of God e.g. illness, constitutes lawful excuse for non-performance of the contract.

(d)     Change in law:  Performance of a contract may also become impossible due to a subsequent change in the law.  The law passed after the contract may prohibit performance of some act, which may be very basis of the contract.  As such the contract is discharged due to subsequent impossibility and the parties become free from their mutual obligations.

(e)     Outbreak of war:  Contracts may be affected by war in a variety of ways, viz., (i) by emergency legislation controlling prices or otherwise relating to restriction of trade; (ii) by prohibiting or restraining transaction with alien enemy.

Coercion vs Udue Influence

According to Section 19 of the Indian Contract Act, 1872 when consent to an agreement is given due to coercion or undue influences, such a contract is voidable at the option of the party whose consent was so obtained.  The difference between coercion and undue influence is as under:

	Coercion		Undue Influence
(a)	It involves the physical force or threat.  The aggrieved party is complete to make the contract against its will.		It involves moral or mental pressure.  The aggrieved party believes that he or she would make the contract.
(b)	It involves committing or threatening to commit an act forbidden by Indian Penal Code for detaining or threatening to detain property of another person.		No such illegal act is committed or a threat is given.
(c)	It is not necessary that there must be some relationship between the parties.		Some sort of relationship between the parties is absolutely necessary.
(d)	Coercion need not proceed from the promisor nor need it be directed against the promisor.		Undue influence is always essential between the parties to the contract.
(e)	The contract is voidable at the option of the party whose consent has been obtained by the coercion.		Where consent is induced by undue influence, the contract is either voidable or the court may set it sale or enforce it in a modified form.
(f)	In case of coercion where the aggrieved party, as per Section 64, rescinds the contract any benefit received has to be restored back to the other party.		The court has the distinction to direct the aggrieved party to return the benefit in whole or in part or not to give any such directions.