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
- bankruptcy
- breach
- lapse of time
-
frustration
The correct answer is: 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.