CAF-4 · Chapter 9 · Question 11 of 12
Which of the following is NOT a ground for 'frustration' (impossibility) of contract?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Commercial impossibility (performance becomes un-profitable).
Explanation
Commercial hardship or a drop in profits is NOT a legal excuse for non-performance. Performance must be 'legally' or 'physically' impossible for frustration to apply.
More Discharge of a contract MCQs
- Q1If the performance of an act becomes impossible after the contract is made, by reason of some event which the promisor could not prevent…
- Q2If the parties to a contract agree to substitute a new contract for it, or to rescind it, or alter it, the original contract:
- Q3The substitution of a new contract in place of an existing one is legally known as:
- Q4Every promisee may dispense with or 'remit', wholly or in part, the performance of the promise made to him. This is known as:
- Q5When a person at whose option a contract is voidable 'rescinds' it, the other party: