Multiple choice

A contract is not frustrated by

  1. commercial impossibility

  2. imposition of government restriction or order

  3. destruction of subject matter of contract

  4. death or incapability of party when contract is of the personal services
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A Correct answer
Explanation

Option (1) is correct: A contract under the Indian Contract Act, 1872 is not frustrated by mere commercial impossibility. Option (2) is incorrect: A contract stands frustrated by imposition of government restriction. Option (3) is incorrect: A contract stands frustrated by destruction of subject matter. Option (4) is incorrect: A contract stands frustrated by death or impossibility of party when contract is of the personal services.

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