Frustration of Contracts: Definition and Requirements - Master's Level

Question 1

Which of the following is NOT a recognized requirement for frustration?

Accepted Answer

Foreseeability of the change in circumstances

Answer

A substantial change in circumstances

Answer

The parties are discharged from their obligations

Answer

The contract becomes impossible to perform

Question 2

Which of the following is NOT an essential requirement for frustration to discharge a contract?

Accepted Answer

The frustrating event must be caused by one of the parties.

Answer

The frustrating event must occur after the formation of the contract.

Answer

The frustrating event must render the contract impossible or radically different from its original purpose.

Answer

The frustrating event must be unforeseen and unavoidable.

Question 3

Which of the following situations would be considered a partial frustration?

Accepted Answer

The destruction of a building that was being renovated.

Answer

The outbreak of a war that makes it impossible to perform a contract for the supply of goods.

Answer

A change in the law that makes a contract illegal to perform.

Answer

The death of one of the parties to a contract.

Question 4

What is the primary legal consequence of a contract being discharged on the grounds of frustration?

Accepted Answer

The parties are released from their obligations under the contract.

Answer

The contract is automatically void from the beginning.

Answer

The parties must pay damages to each other for any losses incurred.

Answer

The contract remains in force, but the terms may be modified to reflect the changed circumstances.

Question 5

Which of the following grounds for frustration is NOT recognized under English common law?

Accepted Answer

Change in market conditions

Answer

Subsequent illegality

Answer

Government intervention

Answer

Force majeure

Question 6

Which of the following factors is irrelevant in determining whether a contract has been frustrated?

Accepted Answer

The financial impact of the frustrating event

Answer

The nature of the contract

Answer

The foreseeability of the frustrating event

Answer

The time at which the frustrating event occurred

Question 7

What is the key difference between subjective and objective frustration?

Accepted Answer

Subjective frustration focuses on the parties' intentions, while objective frustration focuses on the objective circumstances of the case.

Answer

Subjective frustration is only available in cases where the frustrating event was unforeseen, while objective frustration is available in all cases.

Answer

Subjective frustration is more common in personal contracts, while objective frustration is more common in commercial contracts.

Answer

Subjective and objective frustration are the same concept.

Question 8

Which of the following remedies is NOT typically available for a party who has been released from a contract on the grounds of frustration?

Accepted Answer

Specific performance

Answer

Restitution

Answer

Damages

Answer

Injunction

Question 9

In contract law, frustration refers to which of the following?

Accepted Answer

An unforeseen event that makes it impossible or significantly alters the performance of a contract as originally intended.

Answer

A party's refusal to fulfill their contractual obligations without a valid reason.

Answer

A legal mechanism that allows parties to end a contract without legal consequences.

Question 10

Which of the following is not an essential requirement for the doctrine of frustration in contract law?

Accepted Answer

A reasonable alternative means of performance becomes available

Answer

A change in circumstances that was unforeseen and unforeseeable

Answer

A radical change in the performance required under the contract

Answer

The frustration must render the contract impossible to perform

Question 11

Which of the following is a potential consequence of a contract being discharged due to frustration?

Accepted Answer

Rescission of the contract and restitution of any benefits received

Answer

Damages for breach of contract

Answer

Specific performance of the contract

Answer

An injunction to prevent further breach of the contract

Question 12

The legal basis for terminating the parties' obligations in a frustrated contract is the:

Accepted Answer

Common law doctrine of frustration

Answer

Relevant statutory provisions

Answer

Equitable principles

Answer

An implied term in the contract

Question 13

The 'doctrine of supervening illegality' in the context of frustration:

Accepted Answer

Extends the doctrine of frustration to cover situations where performance becomes unlawful

Answer

Allows a contract to be discharged even if the change in circumstances was foreseeable

Answer

Prohibits the discharge of a contract due to frustration if the change in circumstances is the result of a party's own actions

Answer

Only applies to contracts that are illegal from the outset

Question 14

Which of the following is a necessary requirement for a contract to be discharged on the grounds of frustration?

Accepted Answer

A supervening event that renders the performance of the contract impossible or radically different from what was contemplated

Answer

Total destruction of the subject matter of the contract

Answer

Foresight of the event by one of the parties

Answer

Mutual agreement between the parties

Question 15

In order for a frustrating event to discharge a contract, the disruption to the contract's performance must be:

Accepted Answer

Fundamental, amounting to a failure of consideration

Answer

Reasonably foreseeable

Answer

Temporary and avoidable

Question 16

Which of the following is a legal consequence of frustration?

Accepted Answer

Automatic discharge of the contract

Answer

Suspension of the contract indefinitely

Answer

Modification of the contract to accommodate the new circumstances

Answer

Enforcement of the contract despite the frustrating event

Question 17

The doctrine of anticipatory breach in the context of frustration refers to:

Accepted Answer

The discharge of the contract before the frustrating event actually occurs

Answer

The continued performance of the contract despite the frustrating event

Answer

The intentional frustration of the contract by one of the parties

Question 18

Which of the following is NOT generally recognized as a category of frustrating events?

Accepted Answer

Fluctuations in market demand or economic conditions

Answer

Supervening illegality or impossibility

Answer

Outbreak of war or natural disasters

Answer

Destruction or fundamental alteration of the subject matter

Question 19

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

Accepted Answer

Restitution, i.e., the restoration of parties to their pre-contractual positions

Answer

Specific performance, i.e., an order to enforce the contract

Answer

Injunction to restrain further performance

Answer

Damages for breach of contract

Question 20

Which of the following is NOT a factor considered by courts in determining whether a contract has been frustrated?

Accepted Answer

The subjective intentions of the parties

Answer

The extent of the disruption caused by the frustrating event

Answer

The nature and purpose of the contract

Answer

The availability of alternative means of performing the contract

Question 21

Which of the following is NOT an essential requirement for a contract to be discharged on the grounds of frustration?

Accepted Answer

Unforeseeability

Answer

Contract becomes impossible to perform

Answer

Frustration occurs without the parties' fault

Answer

Radical change of circumstances

Question 22

Which of the following is NOT a consequence of frustration?

Accepted Answer

Damages are awarded to the innocent party.

Answer

Both parties are released from their obligations under the contract.

Answer

The contract is discharged from the date of frustration.