Concept:
Mohr's failure envelope represents the limiting shear strength of soil. The relationship between the normal stress and shear stress at failure is given by the Mohr-Coulomb criterion
\[
\boxed{\tau=c+\sigma\tan\phi}
\]
where
\[
c=\text{Cohesion},\qquad
\phi=\text{Angle of internal friction}.
\]
A Mohr's circle lying below the failure envelope represents a safe condition, touching the envelope represents failure, while a point above the envelope is physically impossible.
Step 1: Interpret the position of the point.
A point above the Mohr's failure envelope indicates that the shear stress exceeds the available shear strength.
Such a stress state cannot exist in reality.
Step 2: Identify the condition.
Hence, a point above the failure envelope represents an
\[
\boxed{\text{Imaginary condition}.}
\]
Therefore, the correct option is
\[
\boxed{(A)\;\text{Imaginary condition}.}
\]