Impossibility of Performance After Alleged Default
Synthèse Legislator
Généré par l'IAA civil action was brought concerning an obligation that had become impossible to perform due to a fortuitous event; the lower court held that the debtor was liable because the impossibility of performance arose after the established due date for performance, which implied the debtor was in default. The high court quashed the decision, reasoning that the debtor cannot be held liable for the fortuitous event causing the impossibility of performance if that event occurred after the debtor was already in default, as the risk of such an event typically transfers to the debtor only upon default, and in this case, the default was not validly established to shift the risk before the fortuitous event occurred.
Regeste Legislator
Généré par l'IAImpossibility of Performance After Alleged Default: The high court quashed the decision, reasoning that the debtor cannot be held liable for the fortuitous event causing the impossibility of performance if that event occurred after the debtor was already in default, as the risk of such an event typically transfers to the debtor only upon default, and in this case, the default was not validly established to shift the risk before the fortuitous event occurred.