Supervening Events That May Lead to Frustration of a Contract

question 31

Multiple Choice

Supervening events that may lead to frustration of a contract are not likely to include:

• A)Unexpected destruction of the subject matter of the contract.
• B)A party to the contract dying where the contract requires the party to perform a personal service.
• C)An unexpected change in the law making performance of the contract illegal.
• D)A change in the conditions under which one of the parties is obliged to perform their obligations, even if that change is only slight.

---

Definitions:

Operating Costs

Expenses associated with the normal business operations, including cost of goods sold and operational overhead.

Operating Cost

Expenses associated with the day-to-day functions of a business, including costs for rent, utilities, and payroll.

Useful Life

The estimated period over which an asset is expected to be usable for its intended purpose, affecting depreciation calculations.

Economic Value

A measure of the benefit provided by a good or service to an economic agent, often quantified in terms of willingness to pay or the added utility it offers.