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Which section of the Indian Contract Act, 1872 governs the doctrine of frustration of contract?

Under the second paragraph of section 56, a contract becomes void when performance becomes impossible after formation, or unlawful because of an event the promisor could not…

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Which section of the Indian Contract Act, 1872 governs the doctrine of frustration of contract?

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Answer and explanation

Correct answer A

Under the second paragraph of section 56, a contract becomes void when performance becomes impossible after formation, or unlawful because of an event the promisor could not prevent. The first paragraph deals with agreements to do acts that are impossible from the outset. Satyabrata Ghose v. Mugneeram Bangur & Co. (AIR 1954 SC 44) discusses frustration under section 56.

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Option A

The second paragraph of section 56 governs supervening impossibility or unlawfulness.

Option B

Section 33 governs enforcement of a contingent contract that depends on an event not happening.

Option C

Section 75 gives a rightful rescinder a claim for loss caused by non-fulfilment.

Option D

Section 55 concerns failure to perform at a fixed time and whether time was essential.

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