A Contract Might Be Discharged by the Doctrine of Frustration

question 54

Multiple Choice

A contract might be discharged by the doctrine of frustration if

• A)the frustrating event is contemplated by the contract.
• B)the contract becomes purposeless after it was entered into.
• C)the contract is expressly absolute.
• D)the frustrating event is self-induced.
• E)the contract was impossible to perform at the time it was entered into.

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Definitions:

Super-Event

A significant occurrence or gathering with a large impact, often exceeding the scale and effects of typical events.

Total Shutdown

A situation where an organization ceases all operations, often due to economic challenges, natural disasters, or strategic decisions.

Expected Monetary Value

A quantified financial analysis technique used to predict the overall outcome of a decision under uncertainty by multiplying possible outcomes by their probabilities and summing those values.

Supplier Diversification

The strategy of sourcing materials or products from a variety of suppliers to reduce risk and increase reliability in the supply chain.