Which event is a classic example of termination by impossibility due to destruction of property?

• A. Destruction of property
• B. Mutual agreement
• C. Performance
• D. Fraud/misrepresentation

Answer: (A)

Destruction of the thing to be performed makes accomplishment of the promise objectively impossible, so the contract is discharged. When property or subject matter that is essential to the performance is destroyed, there’s no way to fulfill the obligation, and the parties are released from their duties because continuing would be futile. This is the classic case of termination by impossibility.

Other ways a contract can end exist, but they don’t illustrate impossibility from destruction. Mutual agreement ends the contract by the parties’ consent, not because performance has become impossible. If one party actually performs, there’s no termination by impossibility. Fraud or misrepresentation relates to how the contract was formed and may lead to rescission or damages, not to an interruption caused by the destruction of property.