A contract terminated by the occurence of an event which makes performance impossible is discharged by?
Answer Details
The correct term to complete the sentence is "frustration".
When a contract is frustrated, it means that an event has occurred that makes it impossible to fulfill the obligations of the contract. This event is usually beyond the control of both parties and could not have been foreseen or prevented.
For example, if a contract was made for the delivery of goods from one country to another, but a war breaks out that closes the borders, it would be impossible to fulfill the contract. In this case, the contract would be frustrated, and both parties would be released from their obligations.
When a contract is frustrated, it is automatically discharged, and neither party can be held liable for any breach of the contract. The parties are usually released from their obligations, and any payments made under the contract are returned.
It is important to note that frustration is different from breach, where one party fails to fulfill their obligations under the contract. In frustration, both parties are unable to fulfill the contract due to an unforeseeable event that makes performance impossible.