Subsequent Impossibility

  • Subsequent impossibility of performance (e.g. delivery of goods/works)

    • Contract is originally possible and later becomes impossible

    • e.g. destruction of an individual object of sale or an individual work

    • No possibility of replacement (delivery of an equivalent item)

    • The creditor must be compensated for the contractual benefits that can no longer be realized.

  • Comparison to initial Impossibility

    • Contract is not possible, absurd or forbidden to anyone from the outset

    • Damages: The creditor is compensated only for expenses incurred in reliance on the contract. (reliance damage)