ABSTRACT

The problem of a contract becoming impossible (or much more difficult) to perform after it has been made can be dealt with in two ways. The contract can simply be terminated, and, if any steps have been taken under it, the law will determine whether these should be reversed or made the subject of compensation. This is a severe step to take, however, and amendment of the contract may be preferable, if the legal system in question can give some conceptual justification for doing this. The law may then merely make part of the contract void or imply some additional clause(s) into the contract to cover the situation which has arisen.