ExpertEasy1 markMultiple Choice
ACCA · Question 30 · The law of obligations
Section A
Which of the following events would most likely result in the frustration of a contract?
Section A
Which of the following events would most likely result in the frustration of a contract?
Answer options:
A.
The contract becomes more expensive to perform due to inflation.
B.
One party realizes they made a bad bargain.
C.
The subject matter of the contract is destroyed by an unforeseeable fire.
D.
A supplier is late delivering materials.
How to approach this question
Identify an event that makes a contract impossible to perform through no fault of either party.
Full Answer
C.The subject matter of the contract is destroyed by an unforeseeable fire.✓ Correct
Frustration occurs when an unforeseen event, outside the control of either party, makes the contract impossible, illegal, or radically different to perform. Destruction of the subject matter is a classic example.
Common mistakes
Thinking that a contract is frustrated just because it becomes unprofitable.
Practice the full ACCA LW — Corporate and Business Law Practice Exam 5
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