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CLAT Reasoning Test - 7

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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.

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