Multiple choice

Assertion (A): When subject matter of a contract is destroyed, the contract is frustrated. Reason (R): Frustration of a contract frustrates a party to the contract.

  1. Both (A) and (R) are true, and (R) is the correct explanation of (A).

  2. Both (A) and (R) are true, but (R) is not the correct explanation of (A).

  3. (A) is true, but (R) is false.

  4. (A) is false, but (R) is true.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When subject matter of a contract is destroyed, the contract is frustrated. In the law of contracts, frustration of purpose occurs when an unforeseen event undermines a party's principal purpose for entering into a contract. 

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