A frustration of contract entails if the performance is

Answer: Option C

Frustration of contract refers to a situation where the performance of a contract becomes impossible due to unforeseen events, without the fault of either party.

Commercially impossible
→ If fulfilling the contract becomes commercially unviable due to unexpected circumstances (like drastic changes in the market or supply chain collapse), courts may consider it as frustration, especially if the cost becomes exorbitant or the benefit of the contract is lost.

Restricted by Government rules & regulations
→ If a government law or regulation directly prohibits or restricts the performance of the contract, it constitutes frustration as the legal environment changes beyond the control of either party.

Destruction of subject matter
→ If the core subject matter of the contract is destroyed (e.g., a specific item to be sold is destroyed by fire), the contract becomes void as its performance is no longer possible.

Therefore, all the situations mentioned can lead to frustration of contract, making Option D the correct answer.