The Doctrine of Frustration Applies If

question 29

Multiple Choice

The doctrine of frustration applies if

• A)after a contract is created, some unexpected event either makes it impossible for the parties to perform or radically undermines the purpose of their agreement.
• B)the defendant repeatedly refuses to perform despite being able to do so.
• C)the contracting parties are unable to reach an agreement and are forced to abandon negotiations.
• D)the parties attempted to create a contract in ignorance of some fact that would make it impossible for the parties to eventually perform.
• E)both parties agree to not perform the contract.

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Definitions:

Lease Payments

Regular payments made by the lessee to the lessor for the use of an asset.

Net Advantage

The beneficial difference or surplus resulting from comparing two or more options or situations, often used in evaluating financial decisions.

Taxes

Compulsory financial charges or levies imposed by a government on individuals, businesses, or other entities to fund government spending and services.

Lease

A contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset for a specified period of time.