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.

---

Definitions:

Economic Policy

Strategies and decisions made by the government concerning the economy, including taxation, government spending, and interest rates.

Economic Generalizations

Broad statements that apply to economic behavior or trends, often used to predict future economic outcomes.

Entrepreneur's Sole Function

The primary responsibility of an entrepreneur, often seen as identifying opportunities, allocating resources, and driving innovation and economic growth.

Marginal Analysis

An examination of the benefits and costs of one more unit of a product or activity to help make efficient allocation decisions.