Under what condition can a contract be discharged due to impossibility of performance?

A contract can be discharged due to impossibility of performance when one party is unable to complete their obligations because of unforeseen circumstances. Impossibility of performance occurs when an event arises that makes it impossible for one or more parties to fulfill their contractual duties. This can include situations like natural disasters, death, or changes in law that were not anticipated at the time the contract was formed.

The essence of impossibility is that the specific performance of the contract becomes not just difficult but objectively impossible due to circumstances beyond the control of the parties involved. This differs from situations where parties mutually agree to terminate the contract, where performance may still be possible. Additionally, simple delays or payment issues do not constitute impossibility. Lastly, while a contract can be discharged if deemed unlawful, that scenario falls under a separate legal principle related to illegality rather than impossibility of performance. Thus, unforeseen circumstances leading to an inability to perform contractual obligations align directly with the principle of impossibility and justify the discharge of the contract.