Sabo and Gambo entered into a contract for the sale of two baskets of tomatoes belonging to Gambo. Before the date the date of delivery and without any defa...

Answer Details

The situation described is an example of the termination of a contract by frustration. Frustration of a contract occurs when an unforeseen event or circumstance arises that makes it impossible to fulfill the terms of the contract. In this case, the theft of the tomatoes made it impossible for Gambo to deliver them to Sabo, even though he had not breached the contract or defaulted on any of the terms. When a contract is frustrated, the parties are typically relieved of their obligations under the contract. This means that neither party can be held liable for non-performance or breach of contract, and any payments or deposits made in advance may be refunded. It's important to note that frustration of a contract is not the same as breach of contract or default. In a breach of contract scenario, one party fails to fulfill their obligations under the contract, while in frustration, an unforeseen event makes it impossible for the parties to perform as agreed.