Frustration in Contract Law: A Comprehensive Guide for Further Education

Question 1

Which of the following is a requirement for frustration to discharge a contract?

Accepted Answer

The performance of the contract has become impossible or radically different.

Answer

The frustrating event was foreseen by the parties.

Answer

The frustrating event occurred with the fault of one party.

Question 2

When a frustrating event occurs, the contract is:

Accepted Answer

Automatically discharged.

Answer

Voidable at the option of either party.

Answer

Enforceable by either party.

Answer

Partially discharged.

Question 3

In which of the following situations would frustration be most likely to occur?

Accepted Answer

A contract for the sale of goods that are destroyed in a fire before delivery.

Answer

A contract for the supply of goods that are delayed due to a strike.

Answer

A contract for the provision of services that become more expensive to perform due to inflation.

Question 4

Which of the following is NOT a fundamental principle of frustration in contract law?

Accepted Answer

Foreseeability of the event by one of the parties

Answer

Impossibility of performance

Answer

Radical change in circumstances

Question 5

In which landmark case did the court establish the principle of frustration due to the outbreak of war?

Accepted Answer

Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour Ltd

Answer

Denny, Mott & Dickson Ltd v James B Fraser & Co Ltd

Answer

Cutter v Powell

Question 6

Which of the following is a key requirement for a successful claim of frustration?

Accepted Answer

The frustrating event must not have been reasonably foreseeable at the time of contract formation.

Answer

The frustrating event must have rendered performance illegal.

Answer

The frustrating event must have caused losses to both parties.

Question 7

If a contract is frustrated, which of the following remedies is available to the parties?

Accepted Answer

Discharge of both parties from further obligations.

Answer

Specific performance of the contract.

Answer

Damages for breach of contract.

Question 8

Which of the following factors is NOT considered in determining whether an event is frustrating?

Accepted Answer

The subjective intentions of the parties.

Answer

The nature of the contract.

Answer

The availability of alternative means of performance.

Answer

The financial impact of the event.

Question 9

Which of the following is an example of a self-induced frustration?

Accepted Answer

A contractor failing to obtain necessary permits due to negligence.

Answer

A key supplier going bankrupt.

Answer

A war breaking out, making performance impossible.

Question 10

Which of the following is a criticism of the doctrine of frustration?

Accepted Answer

It can lead to uncertainty and unpredictability in contractual relationships.

Answer

It is too narrow and does not cover all unforeseen events.

Answer

It provides too much protection to parties who have breached their contracts.

Question 11

Which of the following types of frustration is NOT recognized by the courts in contract law?

Accepted Answer

Temporary frustration.

Answer

Destruction of the subject matter

Answer

Radical change in circumstances

Answer

Supervening illegality

Question 12

Which of the following is an example of a frustrating event that could potentially discharge a contractual obligation?

Accepted Answer

A government ban on the export of a critical component required for contract fulfillment.

Answer

A delay in delivery due to unforeseen weather conditions.

Answer

A rise in the cost of raw materials, making the contract more expensive to perform.

Question 13

Which of the following is a potential consequence of frustration in contract law?

Accepted Answer

Loss of anticipated profits

Answer

Specific performance of the contract

Answer

Imprisonment of one of the parties

Answer

Damages for negligence

Question 14

Which of the following is NOT an essential element for establishing frustration in a contract law context?

Accepted Answer

The frustrating event was reasonably foreseeable at the time of contracting.

Answer

The frustrating event was unforeseen at the time of contracting.

Answer

The contract becomes impossible to perform due to the frustrating event.

Answer

The frustrating event renders performance impossible or radically different from what was originally intended.

Question 15

Which of the following is NOT a consequence of frustration in contract law?

Accepted Answer

The contract remains valid and enforceable despite the frustrating event.

Answer

The contract is discharged, terminating the parties' obligations.

Answer

The parties are released from their contractual obligations.

Answer

The parties are entitled to recover any expenses incurred in performing the contract up to the point of frustration.

Question 16

In the landmark case of Taylor v Caldwell, which of the following events was held to have frustrated the contract?

Accepted Answer

The destruction of a music hall that was rented for a specific event.

Answer

The outbreak of war between the parties' countries.

Answer

The death of a key performer who was essential to the event.

Question 17

Which of the following is a key distinction between frustration and impossibility in contract law?

Accepted Answer

Frustration arises from an unforeseen event that occurs after the contract is formed, while impossibility refers to an event that makes performance impossible at the time of contracting.

Answer

Frustration is a temporary event, while impossibility is permanent.

Answer

Frustration discharges the contract, while impossibility does not.

Question 18

In the case of Davis Contractors Ltd v Fareham UDC, which of the following events was held to frustrate the contract?

Accepted Answer

An unexpected rise in the cost of labor

Answer

A change in government regulations

Answer

The discovery of an archaeological site on the construction site

Answer

The outbreak of war

Question 19

In order for an event to be considered frustrating, it must satisfy which of the following criteria?

Accepted Answer

It must render the performance of the contract impossible or radically different.

Answer

It must be within the control of one of the parties.

Answer

It must be foreseeable by the parties.

Question 20

Which of the following is a consequence of a successful plea of frustration?

Accepted Answer

Both parties are discharged from further performance of the contract.

Answer

Only the party who caused the frustrating event is discharged.

Answer

The contract remains in force, but the frustrated party is entitled to damages.

Question 21

A contract for the hire of a concert hall for a music festival is made. Before the festival, the hall is destroyed by fire. Which of the following is the most likely outcome?

Accepted Answer

The contract is frustrated, and the parties are discharged from their obligations.

Answer

The hirer is liable for the cost of rebuilding the concert hall.

Answer

The contract remains in force, and the hirer must find an alternative venue.

Question 22

Which of the following is NOT a requirement for a contract to be frustrated?

Accepted Answer

The event must have been foreseeable by the parties at the time the contract was made.

Answer

The event must render performance of the contract impossible or radically different.

Answer

The event must be outside the control of the parties.

Question 23

A contract for the construction of a building is made. The government then imposes new regulations that make it impossible to complete the building to the agreed specifications. Which of the following is the most likely outcome?

Accepted Answer

The contract may be frustrated, depending on the severity of the regulations.

Answer

The contract is not frustrated, as the parties could have foreseen the possibility of regulation changes.

Answer

The contractor is liable for breach of contract.

Question 24

What is the legal effect of a contract being frustrated?

Accepted Answer

The contract is automatically discharged, and the parties are relieved of their future obligations.

Answer

The contract remains in force, but the parties can renegotiate the terms.

Answer

The contract is void ab initio, as if it had never been made.

Question 25

A contract for the delivery of goods is made. The delivery date is delayed due to an unforeseen strike at the port. Which of the following is the most likely outcome?

Accepted Answer

The contract may be frustrated, depending on the length and severity of the strike.

Answer

The contract is not frustrated, as the strike is a temporary disruption.

Answer

The buyer is entitled to cancel the contract and claim damages.

Question 26

A contract for the hire of a singer for a concert is made. The singer then becomes ill and unable to perform. Which of the following is the most likely outcome?

Accepted Answer

The contract may be frustrated, depending on the severity of the illness and the ability to find a replacement.

Answer

The contract is not frustrated, as the singer's illness is a personal matter.

Question 27

A contract for the sale of a plot of land is made. The government then designates the land as a protected natural area, making it illegal to build on it. Which of the following is the most likely outcome?

Accepted Answer

The contract is frustrated, as the purpose of the contract is now impossible to achieve.

Answer

The seller is liable for breach of contract.

Answer

The contract is not frustrated, as the land still exists.