What does impossibility of performance refer to?

Impossibility of performance refers specifically to a situation where a party is unable to fulfill their contractual obligations due to unforeseen events that make performance impossible. This could include natural disasters, changes in the law, or the destruction of the subject matter of the contract. Such events are typically outside the control of the parties involved and were not anticipated at the time the contract was formed.

In legal terms, this concept is crucial for determining liability when a party cannot perform as agreed. It allows the affected party to escape liability for breach of contract since the inability to perform wasn't due to their own actions or choices.

Other options do not accurately reflect the definition of impossibility of performance. While the first option mentions an unattainable outcome, it implies a lack of feasibility rather than an absolute impossibility due to external factors. The choice about parties opting not to perform suggests a voluntary decision, which contradicts the nature of legal impossibility, as it implies compulsion by circumstances. Finally, the option regarding delays speaks to issues of timing rather than the actual inability to perform, which falls under different legal principles related to breach of contract rather than impossibility.