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    Question

    What is the legal status of a contract where the performance of the agreed-upon act, after the contract is made, becomes impossible or unlawful due to an unforeseen event beyond the control of the promisor under the Contract Act?

    A The contract remains valid, and the promisor is obligated to perform, unless the promisee agrees to release them Correct Answer Incorrect Answer
    B The contract is voidable at the discretion of the promisor, but only if the promisee consents to the termination Correct Answer Incorrect Answer
    C The contract remains valid, but the parties are required to modify the terms to accommodate the change in circumstances Correct Answer Incorrect Answer
    D The contract automatically becomes void when the act becomes impossible or unlawful, without the need for further action by either party Correct Answer Incorrect Answer
    E The contract is valid, but the promisor must compensate the promisee for any losses incurred due to non-performance Correct Answer Incorrect Answer

    Solution

    Section 56.   Agreement to do impossible act: Contract to do an act afterwards becoming impossible or unlawful—A contract to do an act which, after the contract is made, becomes impossible, or, by reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful.

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