Section 56 of the Indian Contract Act, 1872, deals with

Solution

Section 56 of the Indian Contract Act, 1872, states that if the performance of a contract becomes impossible (either initially or subsequently) due to acts of God, destruction of subject matter, death or incapacity of essential parties, change in law, or other unforeseen circumstances beyond parties' control, the contract becomes void from the beginning. The Supreme Court in Satyabrata Ghose v. Mugneeram Bangur clarified that "impossibility" includes not just literal physical impossibility but also practical impossibility defeating the contract's essential purpose. Upon frustration, the parties stand discharged from obligations, though any benefits received before the frustrating event must be restored under Section 65.