New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    If the subject matter of a contract is destroyed after

    formation of the contract, without fault of either party, the contract_____________________
    A Is illegal Correct Answer Incorrect Answer
    B Becomes void Correct Answer Incorrect Answer
    C Is rendered voidable Correct Answer Incorrect Answer
    D Continues to be valid Correct Answer Incorrect Answer

    Solution

    The doctrine of frustration discharges both parties from their contractual obligations where following the formation of the contract, performance of the contractual obligations become either: Impossible; or Radically different Essentially, what the doctrine of frustration allows for is a remedy in case of a change of circumstances. The frustration of the contract makes the contract void and it also discharges the parties from any liability. 

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