(c) That's right / wrong.
You were asked to select the incorrect statement.
It is incorrect to say that, in the common law, the effect of frustration on a contract is to make the contract void ab initio (from its very beginning) and any performance that has been made must be restored to the party who made it.
It is correct to say that, in the common law, the effect of frustration on a contract is that outstanding obligations are treated as if they were discharged but this does not affect the validity of any performance made before the frustration.
It is correct to say that the effect of frustration under the rules of the common law have been modified by legislation in some Australian jurisdictions, but not in all of them.
Give yourself no marks for this answer.
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