Thursday, 28 April 2016

Cima C05 Exam Question No 51

Question No 51:

Tee Ltd has contracted to use Vee Ltd’s “Grand Hotel” for a business conference. Which of the following would be regarded as a valid reason for Vee Ltd for the unavailability of the hotel on the agreed date under the law of frustration?
  • i. The hotel was closed due to flood damage.
  • ii. The hotel was double booked.
  • iii. The hotel manager had arranged to have the hotel redecorated. The decorators had failed to complete the work by the agreed date.
A. i only.
B.
iii only.
C.
ii and iii only.
D.
i, ii and iii.

Answer: A

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