Question

A agrees to sell his car to B for one lakh rupees. Before delivery of car, A met with an accident and the car got completely destroyed. The contract gets discharged by .

• A. Quasi Contract
• B. Doctrine of Frustration
• C. Breach of Contract
• D. Doctrine of Estoppel

Hint:

The Doctrine of Frustration applies when unforeseen circumstances prevent the performance of a contract, rendering it void.

Answer 1

The Correct Option is B

The contract gets discharged by the Doctrine of Frustration when an unforeseen event, such as an accident that destroys the car before delivery, makes the performance of the contract impossible.
This legal principle releases the parties from the obligations of the contract.

Answer 2

When A agrees to sell his car to B for one lakh rupees, a valid contract is formed between the parties. However, before the delivery of the car, if the subject matter of the contract—the car—gets completely destroyed due to an unforeseen event such as an accident, the contract cannot be fulfilled.

In this situation, the contract is discharged by the Doctrine of Frustration. According to this doctrine, if after the formation of a contract, an unforeseen event occurs which makes the performance of the contract impossible or unlawful, the contract is automatically terminated.

The destruction of the car is an event beyond the control of either party, which renders the performance of the contract impossible. Neither party is held liable for non-performance because the foundational basis of the contract no longer exists.

This doctrine is codified in Section 56 of the Indian Contract Act, 1872, which states that a contract to do an act impossible in itself is void.

Conclusion:
The contract between A and B is discharged by the Doctrine of Frustration due to the complete destruction of the subject matter before delivery.