The performance of rights and duties flowing from the agreement must be objectively possible at the time of the conclusion of the contract
Performance must be certain/ascertainable
It is impossible to perform something which has not been determined & is not determinable
Objective possibility to perform
At the moment of concluding the contract it is objectively/ absolutely impossible to render performance
Only objective impossibility of performance renders the contract void
If performance is an inconvenience or difficult it is not objectively impossible to perform
If parties fail to perform in terms of the contract – it is a breach of contract
Subjective impossibility vs objective impossibility
Objective/absolute impossibility to perform means it is impossible for anyone to perform in terms of the contract
Subjective impossibility to perform means that it is impossible for a specific person to perform but not impossible for other people who would have been in the same position
Impossibility of performance
Supervening impossibility of Performance: performance becomes objectively impossible after the conclusion of the contract due to an external factor = TERMINATION OF CONTRACT & RESTITUTION TAKES PLACE
Initial impossibility: performance is impossible at conclusion of contract = no contract comes into being = VOID CONTRACT
Prevention of performance: performance is made impossible due to the fault of one of the parties = BREACH OF CONTRACT & CAN CLAIM REMEDIES FOR BREACH
Divisibility of performance
If an indivisible performance is objectively impossible, no contract arises
If only a part of a divisible performance is objectively impossible a valid contract will still arise if the part that can still be performed
A performance is divisible if it is physically possible to render the performance in separate units
A performance is indivisible if it can only be rendered in one unit, i.e in its entirety
Divisibility is a legal concept – cannot change indivisible to divisible but can change divisible to indivisible
Determined and ascertainable performance
Impossible to perform where the nature of performance is unclear or unambiguous, i.e not determined or ascertainable
Performance will be determined if the parties expressly mention the performance in the agreement
Where the debtor is authorised to perform a different specified performance if s/he chooses = facultative obligation
Ascertainable = at the time of concluding the contract the parties agree on a criterion or formula to identify performance
Alternate obligation – a party may select the performance which is due from two or more different alternatives
Generic obligation – determined by describing a kind of commodity in terms of number, mass or measure
Facultative obligation
Where the parties agree that A must deliver a specific performance to B, but A could deliver a different performance if s/he wants to
Alternative obligation (performance of choice)
Performance is selected from alternatives. A party is given the choice to choose the object of performance from alternatives within a reasonable period
Facultative obligation
A plumber (debtor) agrees to install a specific toilet in Brad's (creditor) house. The parties agree that if the plumber cannot get the specific toilet, the plumber may install another similar toilet that he deems fit (similar toilet of similar value)
Alternative obligation
John has two houses (Blue House and Red House). John wants to rent out a house to Pam. The parties agree that John may choose which house he rents to Pam and that Pam (upon the election) must rent that house