Section 56

Section 56 of the Indian Contract Act, 1872, states: 'An agreement to do an act impossible in itself is void. A contract to do an act which, after the contract is made, becomes impossible, or, by reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful. Where one person has promised to do something which he knew, or, with reasonable diligence, might have known, and which the promisee did not know, to be impossible or unlawful, such promisor must make compensation to such promisee for any loss which such promisee sustains through the non-performance of the promise.' This section deals with the situation where the contract involves doing an impossible act. The courts have held that if the impossibility arises after the contract is made, the contract becomes void. However, if the promisor knew or should have known of the impossibility, they must compensate the promisee for any loss sustained. In the case of Satyabrata Ghose vs. Mugneeram Bangur & Co., the court observed that the contract becomes void if the performance of the contract becomes impossible after the contract is made.