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Impossibility ofPerformance andOperation of LawInvoluntary DischargeIt is crucial to understand that some contracts come to an end despitewhat the parties intend or what they actually do. In these situations, theobligations that exist under the contract may also expire. The two primaryways contracts are discharged are by impossibility of performanceand by operation of law.Discharge by Impossibilityof PerformanceA contract that becomes legally impossible to perform generallymay be discharged and both parties released from the obligation. The situationsin which the courts will allow a discharge for impossibilityof performance are death or illness that prevents the performance ofa personal service contract; destruction of the exact subject matter or themeans for performance; and illegality, or situations in which the performanceof a contract becomes illegal.Death or Illness in a Personal Service ContractThe death or illness of a party to a contract may be an excuse fornonperformance only if the contract requires the personal service of theperson who has died or become ill. In Example 3, for instance, if Marcelwere to die before completing the portrait for Juleanne, the contractwould be discharged. She selected him for his ability to do the work.Suppose, however, the contract is such that the party who becameill or died had the right to hire someone else to perform the obligation.In this situation, neither death nor illness will discharge the contract. Inthe case of death, the person appointed to settle the deceased person’saffairs would be obligated to hire someone else to carry out the contract.Destruction of the Exact Subject MatterIf the subject matter that is essential to the performance of the contractis destroyed through no fault of either party, the contract is discharged.The destruction must occur after the contract is entered into,but before it is carried out.l How to explainsituations in whichthe law will permita discharge byimpossibilityl How to identifydischarges that occurby operation of lawl How to define thestatute of limitationsl How to identify debtsthat cannot bedischarged inbankruptcyUnderstanding whencontracts are dischargedby impossibility and byoperation of law will helpyou know your legalrights and obligationsin such situations.l impossibility ofperformancel operation of lawl statute of limitationsl bankruptcy lawsChapter 11: How Contracts Come to an End 231