Prepare for the ATT Law Exam. Practice with multiple choice questions, each providing hints and explanations. Be well-prepared for exam day!

Multiple Choice

Frustration in employment occurs when?

Frustration in employment happens when an event outside either party’s control makes it impossible to perform the contract, or changes the obligations so fundamentally that continuing under the original terms would be unfair. If the employer’s business shuts down or ceases to exist, there’s no work to perform and the contract can be terminated without fault by either side. That’s exactly the scenario described. The other situations are rooted in actions by the parties or routine employer-initiated terminations, not in impossibility of performance: ending a contract due to performance defects is a breach; the employee choosing to resign is a voluntary termination by the employee; redundancy is a cancellable dismissal for business reasons, not an automatic end caused by impossibility to perform.

Frustration in employment happens when an event outside either party’s control makes it impossible to perform the contract, or changes the obligations so fundamentally that continuing under the original terms would be unfair. If the employer’s business shuts down or ceases to exist, there’s no work to perform and the contract can be terminated without fault by either side. That’s exactly the scenario described.

The other situations are rooted in actions by the parties or routine employer-initiated terminations, not in impossibility of performance: ending a contract due to performance defects is a breach; the employee choosing to resign is a voluntary termination by the employee; redundancy is a cancellable dismissal for business reasons, not an automatic end caused by impossibility to perform.