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If the subject matter of a contract is destroyed after formation of the contract, without fault of either party, the contract
is rendered voidable
becomes void
continues to be valid
becomes unlawful
Certainly! Let me explain each option:
- Option 1: is rendered voidable
A contract is voidable when one party can choose to either affirm or reject it. Destruction of the subject matter does not generally make a contract voidable.
- Option 2: becomes void
When the subject matter is destroyed without fault of either party, the contract often becomes void, as it's impossible to fulfill.
- Option 3: continues to be valid
The contract cannot continue to be valid if the essential subject matter is destroyed.
- Option 4: becomes unlawful
The destruction of the subject matter does not make the contract unlawful; it may just become impossible to perform.
Correct Answer: Option 2: becomes void
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