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A contract depends on the continued existence of a specific thing, and the parties have made no provision for its loss. Which event can frustrate the contract under section 56 of the Indian Contract…

Question and options

A contract depends on the continued existence of a specific thing, and the parties have made no provision for its loss. Which event can frustrate the contract under section 56 of the Indian Contract Act, 1872?

  1. The specific thing is destroyed without either party’s fault.

  2. The specific thing is destroyed through the promisor’s own negligence.

  3. Performance becomes far costlier after a sharp rise in market prices.

  4. One party was under age when the agreement was made.

Answer and explanation

Correct answer: A - The specific thing is destroyed without either party’s fault.

Under section 56, a contract becomes void when a subsequent event makes the promised act impossible or unlawful in the statutory circumstances. Destruction of the thing on which this contract depends, without the fault of either party, makes performance impossible. Destruction caused by the promisor’s own negligence is self-induced and cannot be relied on as frustration, and a rise in cost makes performance more onerous but not impossible. Incapacity at the time of making relates to formation, not to a later event.

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