Question

Frustration of contract is provided by which section of the India contract Act?

• A. Sec. 73
• B. Sec. 70
• C. Sec. 2(d)
• D. Sec. 56

Hint:

Frustration of Contract = Supervening Impossibility = Section 56. This is when an external, unforeseen event makes performing the contract impossible, thereby ending the contract.

Answer 1

The Correct Option is D

The doctrine of frustration of contract, also known as supervening impossibility, is embodied in Section 56 of the Indian Contract Act, 1872. The second paragraph of this section states: "A contract to do an act which, after the contract is made, becomes impossible, or, by reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful." This means that if the performance of a contract becomes impossible due to an unforeseen event beyond the control of the parties, the contract is discharged. The other sections are unrelated: S.73 deals with damages for breach, S.70 with quasi-contract, and S.2(d) defines consideration.