Section 531 recognizes circumstances where a fundamental change makes performance impossible. Examples include illegality arising after contracting, war, flood, landslide, fire, earthquake and other events beyond human control, destruction of an essential subject matter, and incapacity or death where personal skill is essential.[1]
What is not enough?
The Code expressly distinguishes impossibility from mere difficulty, reduced profit or financial loss. A contract does not automatically end simply because performance became more expensive or less profitable.[1]
Sources
- Nepal Law Commission, **National Civil Code, 2074**, Part 5, including ss. 504–541 and special contract chapters. View source