1) Distinguish Between Initial Impossibility Of Performance,

Supervening Impossibility Of Performance, And Prevention Of

Performance?

If a performance is objectively impossible at the time of conclusion

of a contract, no obligation arises. To render performance
impossible, it is not sufficient that a particular party cannot
perform, that is, subjective impossibility. The impossibility must be
so serious that nobody can render the performance – that is, it
must be objectively impossible. An example of impossible
performance is where A agrees to sell his house to B, but
unbeknown to them the house has already been destroyed by a fire.
Initial impossibility of performance prevents a contract from arising
at all.

If, after the conclusion of the contract, performance becomes

objectively impossible without the fault of the debtor, as a result of
an unavoidable and unforeseen event, this is known as supervening
impossibility of performance, and the obligation to perform is also,
as a general rule, extinguished. The requirements for supervening
impossibility of performance are:

1)the performance must be objectively impossible; and

2)the impossibility must be unavoidable by a reasonable person.

If, after the conclusion of the contract, performance on either side

becomes impossible owing to the fault of either the debtor or the
creditor, the contract is not terminated, but the party who rendered
the performance impossible is guilty of a breach of contract known
as prevention of performance. It is not necessary that the
performance should be objectively impossible in order for the
breach to arise; subjective impossibility will suffice.