Asked by Justin Brady on May 07, 2024
Verified
Kirk entered into a contract with Yemmi to haul gravel in his large tandem truck from Yemmi's gravel pit to a building site some five kilometres distant, at $60 per load. Before Kirk was to begin performance, his truck was destroyed in a serious traffic accident. Kirk need not perform the contract, as the contract was frustrated by the destruction of the truck.
Frustrated Contract
A contract that, through no fault of either party, is unable to be fulfilled due to unforeseen circumstances, rendering the original terms of the contract void.
Large Tandem Truck
A truck configuration involving two sets of axles at the rear for carrying more weight, commonly used for hauling goods or as part of construction machinery.
- Recognize the elements that cause a contract to become frustrated and the outcomes of such situations.
Verified Answer
SA
Saleh AlatiahMay 12, 2024
Final Answer :
True
Explanation :
The destruction of Kirk's truck, which was essential for performing the contract, constitutes a frustration of the contract because it makes performance impossible through no fault of either party.
Learning Objectives
- Recognize the elements that cause a contract to become frustrated and the outcomes of such situations.