Question

In order for a contract to be considered valid, the contract must be possible to perform. Discuss this essential element in relation to physical impossibility and legal impossibility

Answer 1

As rightly mentioned in the question, the possibility of being performed is essential for a contract to be considered valid.

For example, on a very simple and basic level, if I am a 10 year old, if I make a contract with somebody that I will give them a cake when I am 5 years old, it will be null and void since it is impossible that I will be a 5 year old again.

Let us explore both physical and legal impossibility in relation to a contract.

Physical impossibility exists when the act essential to the contract cannot be done or performed physically. For example, flying a horse.

Legal impossibility exists when the act essential to the contract is not illegal, even if it was believed to be illegal or there were conditions creating confusion as to its being illegal or there being doubts about its legality. For example, parking one's car in an area one believes to be a no-parking zone when it was not a no-parking zone.

In context of both of these, a contract has to be physically possible to be valid and physical impossibility renders it invalid. Legal impossibility, on the other hand, serves as a defense when somebody is charged of doing something illegal when it was not illegal after all.

Considering the essential element of how a contract must be possible to perform for a contract to be considered valid, we can conclude from the above that a physically impossible act would not allow a contract to be performed and therefore render it invalid. A legal impossibility, however, would not make it impossible for the contract to be performed and therefore, would not affect the validity of the contract.