Why Did the Court Find That the Contract Was Frustrated

question 23

Multiple Choice

Why did the court find that the contract was frustrated in the case of: Krell v Henry [1903] 2 KB 740?

• A)Due to the declaration of war and the consequent impossibility of performing the contract.
• B)Due to the complete destruction of the subject matter of the contract.
• C)Due to the non-occurrence of an event essential to achieve the substantial purpose of the contract.
• D)Due to the fundamental and radical change in the circumstances of the contract.

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Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Common Stock Account

An equity account that represents the ownership interests of common shareholders in a corporation, reflecting the invested capital and retained earnings.

Reverse Stock Split

A reverse stock split is a consolidation of shares that decreases the total number of outstanding shares and increases the share price proportionately.

Market Value

The existing price for buying or selling an asset or service in the marketplace.