Question

Identify which of the following answers is not a category of contract frustration:

A：One party is frustrated with the other party's performance.

B：A change in the law renders contract performance impossible.

C：The subject matter of the contract is destroyed without fault of either party.

D：An intervening event radically changes the performance of the contract.

Answer 1

Definition of a frustrated contract:

If a contract becomes incapable of being performed subsequent of its formation due to unforseen event or events without fault of either of the party and results in the obligations under the contract being radically different from those already contemplated by the existing parties to the contract.

Also in terms of legal consequence of the contract, contract gets terminated or making the performance by the parties impossible due to change in law. Contract is not void ab initio only the future contract is void.

Option B: A change in the law renders contract performance impossible is a frustrated contract because it makes the contract being incapable of being performed subsequently without the fault of either of the party.

Option C: The subject matter of the contract is destroyed without fault of either party is also a frustrated contract since there is no fault of either of the party and contract becomes incapable of being performed since the subject matter of the contract is destroyed.

Option D: An intervening event radically changes the performance of the contract is also a frustrated contract since such intervening event radically changes the existing perfomance of both the parties and results in the obligations under the contract being radically different from those already contemplated by the existing parties to the contract

Hence Option B, C & D are incorrect since they are frustrated contract.

Option A:  One party is frustrated with the other party's performance is not a frustrated contract.

Because significant characteristic of frustrated contract is there shouldnt be fault of either of the party but in Option A one party getting frustrated with other party's performance violated the characterisitic and hence not a frustrated contract.