[amp_mcq option1=”only where it is unknown to the parties” option2=”only where it is known to the parties” option3=”whether it is known or unknown to the parties at the time of agreement” option4=”whether it is known to the third parties” correct=”option3″]
The correct answer is C. Whether it is known or unknown to the parties at the time of agreement.
A contract is void on the ground of initial impossibility if it is impossible to perform the contract at the time it is made. This is regardless of whether the parties are aware of the impossibility or not.
For example, if you contract to buy a house that has already been sold to someone else, the contract is void because it is impossible to perform. This is true even if you and the seller were both unaware that the house had already been sold.
The reason for this rule is that it is unfair to enforce a contract that cannot be performed. If a contract is void, neither party is obligated to perform it.
It is important to note that initial impossibility is different from subsequent impossibility. Subsequent impossibility occurs when something happens after the contract is made that makes it impossible to perform. For example, if you contract to buy a car and the car is destroyed in a fire before you can take possession of it, the contract is not void because the impossibility occurred after the contract was made. In this case, you may be able to sue the seller for breach of contract.
I hope this explanation is helpful. Please let me know if you have any other questions.