Definition
This legal doctrine excuses contract performance when it becomes literally impossible—like when a property is destroyed before closing. It's different from force majeure, which is contractual.
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Impossibility of performance excuses non-performance when performance becomes truly impossible (not just difficult/expensive). Examples: property destroyed before closing, zoning change makes development illegal, demolition order issued before closing. Differs from force majeure: impossibility is legal doctrine (applies even without clause), force majeure is contractual (only applies if written). Impossibility requires: performance is truly impossible (not difficult), impossibility occurred through no party's fault, party seeking excuse didn't cause impossibility. Related doctrine: commercial impracticability excuses performance when extremely difficult/expensive (lower bar than impossibility; growing acceptance). Courts strictly interpret impossibility: performance isn't impossible just because more expensive or difficult. If party could have prevented impossibility, it doesn't apply. Understanding impossibility: if performance becomes truly impossible, you might be excused (depending on jurisdiction). Different from force majeure which is contractual.
Pro Tip
If performance becomes truly impossible, you might be excused. But courts don't excuse easily.
Example
Property destroyed by earthquake day before closing; performance is impossible. Buyer is excused from purchase obligation; seller is excused from delivery.