Ken entered into a contract with Chris to haul gravel into his large tandem truck from Chris's gravel pit to a building site some three miles away distant, at $60 per load. Before Ken was to begin performance, his truck was destroyed in a serious traffic accident. Ken need not perform the contract as the contract was frustrated by the destruction of the truck.

Question

Quizplus · Accepted Answer

Frustration of contract occurs when an unforeseen event occurs that makes it physically or legally impossible to fulfill the contract, and such event is not the fault of either party. In this case, the destruction of Ken's truck made it physically impossible for him to perform the contract, and thus he is excused from his obligations under the contract.

Ken Entered into a Contract with Chris to Haul Gravel