The correct answer
is C. Both A and B.A contract is discharged on the ground of frustration or subsequent impossibility when an event occurs that makes it impossible or radically different from what the parties originally agreed to. This can happen due to a number of factors, including outbreak of war, change of law or government policy, or natural disaster.
In the case of outbreak of war, for example, a contract to supply goods to a country that is at war may be discharged if it becomes impossible or commercially impracticable to do so. Similarly, a contract to provide services in a country that has undergone a change of law or government policy may be discharged if the new law or policy makes it impossible or illegal to perform the contract.
Natural disasters can also frustrate a contract. For example, a contract to build a house on a beach may be discharged if the house is destroyed by a hurricane.
In all of these cases, the contract is discharged because the event that occurred makes it impossible or radically different from what the parties originally agreed to. The parties are then released from their obligations under the contract and are not required to perform them.