Illinois Contract Law Impossibility of Performance

Illinois Contract Law: Understanding the Doctrine of Impossibility of Performance

Contracts are an essential part of any business transaction, ensuring that parties involved uphold their end of the bargain. However, sometimes, unforeseeable events may occur, leading to non-performance or breach of contract. Illinois contract law recognizes the doctrine of impossibility of performance, which excuses the non-performance of a party where the performance becomes objectively impossible.

What is the Doctrine of Impossibility of Performance?

The doctrine of impossibility of performance, also known as the defense of impossibility, is a legal principle that excuses non-performance of a contract where performance has become objectively impossible. The doctrine stems from the idea that parties cannot be held liable for events beyond their control that render performance impossible.

In Illinois contract law, the doctrine of impossibility of performance applies where:

1. The subject matter of the contract is destroyed or made impossible to perform through no fault of either party

2. The law or government regulations make performance illegal

3. The performance of the contract is frustrated or impracticable due to unforeseeable events.

Examples of events that may trigger the doctrine of impossibility of performance in Illinois contract law include natural disasters, death or incapacity of a party, war, pandemic, and change of law.

Application of the Doctrine of Impossibility of Performance in Illinois Contract Law

In Illinois, the doctrine of impossibility of performance can be invoked as an affirmative defense in a breach of contract action. A party seeking to rely on the defense must prove that the event or circumstance resulting in non-performance was unforeseeable, not caused by their fault or negligence, and renders performance objectively impossible.

The doctrine of impossibility of performance may either completely excuse non-performance or allow for modification of contractual obligations. Where the impossibility of performance is partial, the court may allow for a reduction of the contractual obligations based on the extent of impossibility.

However, invoking the doctrine of impossibility of performance in Illinois contract law requires a high standard of proof. Courts require that the event or circumstance relied on to excuse non-performance is objectively impossible rather than merely difficult or inconvenient.

Conclusion

Contracts are essential in any business transaction, but unforeseeable events may occur, rendering performance of a contract impossible. Illinois contract law recognizes the doctrine of impossibility of performance as an affirmative defense that allows parties to be excused from non-performance where performance becomes objectively impossible. Invoking the doctrine requires a high standard of proof and may either completely excuse non-performance or allow for modification of contractual obligations. As a business owner or contract party in Illinois, it is essential to understand the doctrine of impossibility of performance in case of unforeseen events that may render performance impossible.

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