A contract is discharged by supervening impossibility under which of the following situations?

(A) Destruction of subject matter

(B) Death or disablement of parties

(C) Rescission

(D) Remission

(E) Accord and satisfaction

Choose the most appropriate answer from the options given below:

The correct answer is option 2 (A) and (B) only

Key Points

A contract is deemed to be dissolved because of impending impossibility if the act becomes unlawful or impossible.

Destruction of the subject matter of the contract where neither party is obligated to perform. In such cases, the original contract becomes void.

Death of the parties: The death of the promisor terminates the existing contract.

Important PointsIn contract law, rescission is defined as the cancellation of a contract between parties. Rescission is the reversal of a transaction. This is done in order to restore the parties, as far as possible,  to the position they were in before they entered into a contract Rescission.

Remission of a contract relieves the promisor of his obligations by merely paying a lesser amount or performance under the promise. Section 63 of the Indian Contract Act, 1872, contains three essential elements- acceptance of lesser amount, waiver, and extension of time.