XYZ Ltd contracts with Cross Ltd. to manufacture and supply 100 cases of a special cigar using a specific drug called SuperX. Cross Ltd agreed to pay the contract money, $10,000, to XYZ Ltd and paid $1,000 as advance but before the delivery takes place the Government introduced a law banning the manufacture and supply of SuperX resulting in frustration of the contract. Can Cross Ltd successfully claim the deposit of $1,000 back?

Select one:

a.No, money paid under frustrated contracted cannot be claimed back.

b.No, the contract is frustrated.

c.Yes, because it was a legal contract when it was made.

d.Yes, if Cross Ltd proves that there is a total failure of consideration by XYZ Ltd.