Frustration occurs when the operation of law makes performance of the obligations under the contract illegal.

Question

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Frustration occurs when an unforeseen event occurs after the formation of the contract, which makes performance impossible and this event is not the fault of either party. This can include events such as a war breaking out, a natural disaster destroying the subject matter of the contract or a change in law making performance illegal. Therefore, if the operation of law makes the performance of obligations under the contract illegal, it can lead to frustration.

Frustration Occurs When the Operation of Law Makes Performance of the Obligations