Final answer:
Impracticability in contract law refers to a situation where unforeseen events beyond a party's control make the fulfillment of contract obligations unfeasible, often where specific sources fail or are not assumed to occur.
Step-by-step explanation:
Concept of Impracticability in Contract Law
The concept of impracticability in contract law refers to a situation where the fulfillment of a contract's obligations is rendered unfeasible due to unforeseen events. These events are such that the parties assumed would not occur ('Assuming non-occurrence'). The occurrence of these events must be beyond the control of the party seeking relief ('No fault'), and cannot be due to their negligence or misconduct. Furthermore, impracticability may also involve the 'Failure of a particular source' when a contract stipulates that the performance depends on a specific source which later becomes unavailable. In the context of insurance, the concept of impracticability is relevant as insurers must deal with uncertainty and risk estimation. Imperfect information and the unpredictability of future events make estimating risk and responding to adverse events a challenge.