The claim of frustration is not available in which of the following circumstances?
A) The subject matter of the agreement is destroyed.
B) An event that forms the basis of the contract does not take place.
C) The law changes, making performance illegal.
D) A government policy prevents performance.
E) A change in circumstances makes it difficult or more costly for one of the parties to perform.

Question

Quizplus · Accepted Answer

The claim of frustration is typically not available when a change in circumstances merely makes it difficult or more costly for one of the parties to perform. Frustration applies when an unforeseen event renders contractual obligations impossible, illegal, or radically different from those contemplated by the parties at the time of the contract.

The Claim of Frustration Is Not Available in Which of the Following