BUSINESS ADMINISTRATION
BUSINESS LAW
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
Commercial impossibility
|
|
Supervening impossibility
|
|
Just and reasonable ground
|
|
Unjust enrichment
|
Detailed explanation-1: -This is enshrined in Section 56 of the Indian Contract Act, 1872. Whenever a contract becomes impossible to perform due to an unexpected subsequent physical or legal impossibility, there is no obligation on the parties to perform it.
Detailed explanation-2: -the doctrine of impossibility was that the event which made perform-ance impossible must have been unforeseen by the parties at the time the contract was made. 9 Where the event was found to be foreseeable, courts have denied relief unless the party seeking relief had provided for the contingency in his contract.
Detailed explanation-3: -Supervening impossibility occurs when performance of contractual obligations become objectively impossible as a result of unforeseeable and unavoidable events, which are not the fault of any party to the contract.
Detailed explanation-4: -Supervening impossibility of performance occurs when performance of the obligation is prevented by superior force. those eventualities that could not reasonably have been guarded against. under The Doctrine of Frustration below. 156.
Detailed explanation-5: -A contract to do an act, which after the contract is made, becomes impossible, or by reason of some event which the promisor could not prevent, becomes void when the act becomes impossible or unlawful. This is called “Supervening Impossibility”, i.e. impossibility arising subsequent to the formation of the contract.