Impossibility scenarios: which of the following are valid impossibility grounds?

• A. Destruction of property essential for the contract
• B. Death of essential persons
• C. Governmental policy change
• D. All of the above

Answer: (D)

Impossibility grounds kick in when performing the contract becomes objectively impossible due to events outside the parties’ control, not just more difficult or costly. Destruction of property essential for the contract makes performance physically impossible—you can’t deliver what no longer exists. Death of essential persons can excuse performance if the contract requires the unique personal services of a specific individual and no substitute is allowed or feasible. Governmental policy change can render performance illegal or forbidden, so continuing would violate the law. Because each of these scenarios can defeat the ability to perform, all of the above are valid impossibility grounds.