(b) That's wrong. 

You were asked to select the incorrect statement.

It is incorrect to say that, for a contract to be frustrated, the circumstances which affect how performance is carried out must have changed, without the knowledge of the parties, before the contract is entered into.

It is correct to say that, for a contract to be frustrated, performance need not be completely impossible - it is enough if the changed circumstances make performance materially different from what the parties originally envisaged.

It is correct to say that, even if performance has become impossible, a contract will not be treated as frustrated if the impossibility has been brought about by the party who wants to be excused from performance.

Give yourself no marks for this answer.

Go to the next question...