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WAEC Commerce 1995 Question 63

Question 63

Law of Contract

Mr. Orji contracted to sell 10 colour TV sets to Mr. Ede. Unknown to both of them the TV sets were stolen in transit. The contract may be terminated on the grounds of

  1. A.breach of contract
  2. B.performance
  3. C.bankruptcy
  4. D.frustration
  5. E.capacity
Show the answer and explanation

Answer: D (frustration)

Explanation

A contract is frustrated when an event beyond both parties' control makes it impossible to perform.