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JAMB Commerce 2002 Question 7

Question 7

Law of Contract

Okeze contracted to sell TV sets to Ojo. Unknown to them, the sets were stolen in transit. This contract may be terminated on the grounds of

  1. A.bankruptcy
  2. B.frustration
  3. C.fraudulence
  4. D.breach of contract.
Show the answer and explanation

Answer: B (frustration)

Explanation

An event beyond both parties' control that makes the contract impossible to perform frustrates it.