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    Question

    Under Section 65 of the Indian Contract Act, 1872, when

    a contract becomes impossible to perform due to an unexpected event, the contract is:
    A Enforceable with damages Correct Answer Incorrect Answer
    B Discharged, and neither party is liable if the event was not within their control Correct Answer Incorrect Answer
    C Discharged only if both parties agree Correct Answer Incorrect Answer
    D Enforceable but parties must accept partial performance Correct Answer Incorrect Answer
    E Void from the beginning Correct Answer Incorrect Answer

    Solution

    Section 65 provides that if, after a contract is made, a subsequent event happens that makes performance impossible, neither party is liable unless the event was within their control or they assumed the risk. This is the doctrine of frustration, which was clarified in Satyabrata Dey v. Govt. of West Bengal (1974) 2 SCC 661 and Waddington v. Bristow. Performance must be impossible, not merely difficult or expensive. [Citation: Section 65, Indian Contract Act, 1872; Satyabrata Dey case]

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