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    Question

    Under Section 56 of the Indian Contract Act, 1872,

    agreements whose object or performance becomes impossible are:
    A Valid but unenforceable Correct Answer Incorrect Answer
    B Void from inception Correct Answer Incorrect Answer
    C Contingent upon impossibility removal Correct Answer Incorrect Answer
    D Renegotiable with modified terms Correct Answer Incorrect Answer
    E Transformed into quantum meruit claims Correct Answer Incorrect Answer

    Solution

    Section 56 of the Indian Contract Act, 1872 declares frustration of contracts void ab initio when performance becomes impossible due to: (a) initial impossibility, (b) subsequent impossibility (destruction of subject matter, death/incapacity, change of law), or (c) illegality. This doctrine allocates risk fairly between disappointed parties.

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