The courts have ruled that a contract can be frustrated if:

Question

Quizplus · Accepted Answer

All three options (A, B, and C) are valid reasons for a contract to be frustrated. If an event on which the contract was based does not occur (option A), such as if a concert or sporting event is cancelled, then the contract may be frustrated. If the subject matter of the contract is destroyed (option B), such as if a rented property burns down before the rental period begins, then the contract may be frustrated. If there is a substantial change in circumstances that means the performance will be fundamentally different from the one agreed upon (option C), such as if a contractor agrees to build a house on a certain piece of land but the land is later found to be unsuitable for construction, then the contract may be frustrated. Therefore, option D (all of the above) is the best answer.

The Courts Have Ruled That a Contract Can Be Frustrated