Which doctrine discharges a real estate contract when the subject matter is destroyed or becomes impossible to perform?

• A. Novation
• B. Impossibility
• C. Accord and satisfaction
• D. Duress

Answer: (B)

The main idea here is impossibility of performance. When the thing to be transferred or performed no longer exists or cannot be done, the contract can be discharged because there is no subject matter left to convey or complete. In a real estate deal, the property itself is the thing that must be delivered. If the property is destroyed (for example, by fire or other disaster) before closing, there is no real estate to transfer, so the obligation to perform is extinguished. This is an objective, unforeseen barrier to fulfilling the contract, not a fault of either party.

Novation would replace the old contract with a new one; accord and satisfaction would settle a claim with a different performance; duress involves coercion that invalidates consent. None of those address the situation where the subject matter ceases to exist, which is why impossibility is the proper doctrine.