12. Contracts of which the subject has partially ceased to exist

Notwithstanding anything contained in section 57 of the

Contracts Act 1950, a contract is not wholly impossible of performance because a portion of its subject matter, existing, at its date, has ceased to exist at the time of the performance.

A contracts to sell a house to B for RM10,000. The day after the contract is made, the house is destroyed by a cyclone. B may be compelled to perform his part of the contract by paying the purchase-money.

In consideration of a sum of money payable by B, A contracts to grant an annuity to B’s life. The day after the contract has been made, B is thrown from his horse and killed. B’s representative may be compelled to pay the purchase-money.