What does the impossibility of performance doctrine entail?

The impossibility of performance doctrine essentially holds that if an unforeseen event occurs that makes it impossible for one party to fulfill their contractual obligations, that party may be excused from performance without facing liability for breach of contract. This doctrine recognizes that certain events, which could not have been anticipated and which fundamentally undermine the ability to perform the contract, can relieve a party of their obligations.

For instance, if a natural disaster destroys the subject matter of the contract, such as a building that is to be leased, the tenant may be unable to continue the lease, and thus, based on the impossibility doctrine, the contract may be effectively voided. The key aspect here is the unforeseen nature of the event that led to the impossibility, which distinguishes this doctrine from other principles that deal with contractual breaches.

Other options do not accurately reflect the essence of this doctrine. The notion of a party being able to withdraw from a contract without consequences does not fully capture the legal standards set by impossibility and could imply voluntary withdrawal rather than an involuntary one due to unforeseen circumstances. Requiring all contracts to be fulfilled regardless of circumstances runs contrary to the core tenet of the doctrine, which specifically allows for exceptions under the impossibility framework. Finally, the requirement to notify