Question

Owing to strike in the factory of X, he is not able to supply the goods to Y as per the terms of the agreement. The agreement in such a case

• A. Is discharged
• B. Is not discharged
• C. Is not discharged
• D. Is voidable at the option of X

Hint:

Strikes may not always trigger frustration; assess if the event makes performance truly impossible under Section 56.

Answer 1

The Correct Option is B

Under Section 56 of the Indian Contract Act, 1872, a contract is discharged only if performance becomes impossible due to unforeseen events. A strike may not constitute impossibility unless it renders performance absolutely impossible. Thus, the correct answer is: \[ {\text{Is not discharged}} \]