Question

When after the formation of a valid contract, an event happens which makes the performance of contract impossible, then the contract becomes ____________.

• A. void
• B. voidable
• C. valid
• D. illegal

Answer 1

The correct option is A void

Section 56 of the Indian Contract Act, 1872 states certain conditions with respect to frustration of contract, which are as follows:

(1) there must be a valid contract.

(2) the promises in the contract have not yet been performed.

(3) the promises in the contract become impossible to perform.

(4) the even that has rendered performance of the contract impossible should be out of control of both the parties to the contract.

On fulfillment of the above conditions, the contract becomes void.