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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
voidable
discharged
not discharged
unlawful
- Option 1: Voidable
- A voidable contract is one where one or more parties have the option to enforce or rescind the contract but does not naturally apply when the subject matter is destroyed without fault.
- Option 2: Discharged
- When the subject matter of a contract is destroyed without fault, the contract is typically discharged due to impossibility of performance.
- This means the contract ends, and neither party has further obligations.
- Correct Answer: Option 2
- Option 3: Not discharged
- This implies that the contract continues despite the destruction of the subject matter, which is not the case in such situations.
- Option 4: Unlawful
- A contract is unlawful if it involves illegal activities, not simply due to the destruction of the contract's subject matter.
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