Supervening and Subsequent Impossibility

Impossibility that arises after the formation of a contract is called supervening impossibility or subsequent impossibility. It renders the performance of the contract impossible, thereby excusing the parties from their obligations under the contract.

Examples of supervening impossibility include natural disasters, death of a party, government regulations, or destruction of subject matter of the contract.

Difference Between Supervening and Subsequent Impossibility

Supervening impossibility refers to an event that occurs after the formation of the contract, which makes it impossible to perform the contract. Subsequent impossibility, on the other hand, refers to a situation where the performance of the contract becomes impossible due to a reason that existed at the time of the contract's formation but was unknown to the parties.

For instance, if a person agrees to sell a specific car to another person, but the car is destroyed in a fire, then it is an example of supervening impossibility. The performance of the contract becomes impossible due to something that happened after the formation of the contract.

On the other hand, if a person agrees to sell a specific car to another person, but the car is already sold to someone else, then it is an example of subsequent impossibility. The performance of the contract becomes impossible due to something that existed at the time of the contract's formation but was unknown to the parties.

Conclusion

In conclusion, supervening and subsequent impossibility are both situations where the performance of a contract becomes impossible. However, supervening impossibility refers to an event that occurs after the formation of the contract, while subsequent impossibility refers to a situation where the reason for impossibility existed at the time of the contract's formation but was unknown to the parties.