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Third party’s failure to perform promise on whose performance your performance of promise is depend upon. In this case, contract
is not discharged
is discharged
becomes void
becomes voidable
- When your performance of a promise depends on a third party’s act, and that third party fails to perform, the contract becomes void.
- This is because the contract depends on a condition precedent. If that condition (third party's performance) fails, the main contract cannot be carried out, so it is void.
- Option 1: Is not discharged – This is incorrect. If performance becomes impossible due to third party non-performance, the contract doesn’t remain enforceable.
- Option 2: Is discharged – Not entirely accurate, as “discharged” usually means performance is completed or contract is terminated for other reasons.
- Option 3: Becomes void – Correct answer. The contract becomes void when the dependent event (third party’s act) fails.
- Option 4: Becomes voidable – Not correct, as voidable contracts depend on the will of one party, not external events.
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