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Mr. Taju entered into a contract to let a car to Mr. Funbi for his...

Commerce
JAMB 2020

Mr. Taju entered into a contract to let a car to Mr. Funbi for his wedding for two days. However, the car had an accident before the first day. Mr. Funbi attempted to Claim damages but failed. This implies that the contract was terminated by

  • A. bankruptcy
  • B. breach
  • C. lapse of time
  • D. frustration
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Correct Answer: Option D
Explanation

One of the ways a contract can be terminated without the defendant paying damages

A contract can be terminated by frustration if a fundamental event that makes it impossible for the discharge of the said contract occurs.

In the instance above, Mr. Taju's car had an accident a day before he was meant to give it to Mr. Funbi. The non-performance of the contract by Mr. Taju woould have made him liable for damages, but since it was of natural cause, he can only decide to compensate Mr. Funbi, but not obligated to do so.


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WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC offline past questions - with all answers and explanations in one app - Download for free
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts