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In a survey of cases in federal, state and bankruptcy courts, commercial tenants seeking to delay or excuse the payment of rent because of pandemic-related downturns in business sometimes looked to the equitable doctrines of frustration of purpose and impossibility for relief. ), 2020 N.Y. Slip Op. Lloyd v. Murphy :: :: Supreme Court of California Decisions The doctrine of impossibility is one of the important principles of equity and has been successfully argued in the taxation matters also. Frustration and supervening impossibility / The doctrines of . The party asserting the defense of impossibility has the burden to prove the following elements: (1) a supervening event made performance impossible or impracticable; (2)the nonoccurrence of the event was a basic assumption upon which the contract was based; (3) the occurrence of the event resulted without the fault of the party seeking to be excused; (4)the party seeking to be excused did not assume the risk of occurrence; and (5) the party has not agreed, either expressly or impliedly, to perform in spite of impossibility or impracticability that would otherwise justify nonperformance. The doctrine of impossibility is a contract law concept and refers to situations in which it is impossible for a party to a contract to perform its obligations under it. California Court of Appeal Decisions - Justia Law Our New Normal: Dealing with COVID-19 Concerns in the Workplace, Member Feature: Jeff Cruz, an in-house attorney with a passion for the construction industry, American Bar Association The soundness of including "pandemic" or "epidemic" within the definition of a force majeure clause. One such defense is that of impossibility of performance. Landlord 1600 Walnut Corporation sought to recover rental payments owed. Each time you purchase a ticket to an event or pay a parking garage, you are contracting to pay dollars for access to space. California Court Can Apply Impossibility Doctrine, Trustees Beware: The Line Between Protected and Wasteful Litigation Is Thinner Than You Think, California Courts Should Prioritize Hearings on Elder Abuse Restraining Orders, ChatGPT Blog Post on Undue Influence Gets a D, Home Is Where You Lay Your Sombrero Spouse Who Lives Abroad Cannot Serve as Administrator of Husbands Estate, Youre Fired! Impracticability means the excuse in performance of a duty. In 1999, he established a trust that offered distributions to three Control Master Products employees (Schwan, Johnson and Ostrosky) if they remained employed when he and his wife were deceased. Third, impossibility also arises if, after the parties sign the contract, a new law comes into being that makes performing illegal. Ostrosky, on the other hand, retired just prior to the sale of the companys assets. India: Doctrine Of Commercial Impracticability - Mondaq The impossibility defense is an excuse to performance that Texas courts will refer to as impossibility of performance, commercial impracticability, or frustration of purposethough the choice of terminology is of no significance, as each is applied identically.