Question 31 Paul has a contract to sell i-watches to a Jo Ann in Vietnam, and enter into a contract to purchase the i-watches from Gregory in Silicon Valley. The Viétnam Government banned i-watches imported into the country. Consequently, Paul cancels the contract with Gregory. Is "frustration of purpose" recognized in the United States? a. Recognized in the United States b. Generally not recognized in the United States c. Breach of contract d. Anticipatory repudiation

## Step 1<br />The problem presents a situation where Paul, a businessman, has a contract to sell i-watches to Jo Ann in Vietnam and another contract to purchase the i-watches from Gregory in Silicon Valley. However, the Vietnam government bans the import of i-watches, which forces Paul to cancel the contract with Gregory.<br /><br />## Step 2<br />The question asks whether the legal doctrine of "frustration of purpose" is recognized in the United States. This doctrine applies when an unforeseen event undermines a party's principal purpose in entering into a contract, making the performance of the contract pointless or futile.<br /><br />## Step 3<br />In the given scenario, the Vietnam government's ban on i-watches makes Paul's contract with Gregory pointless, as he cannot import the i-watches into Vietnam. This situation aligns with the definition of "frustration of purpose".<br /><br />## Step 4<br />The doctrine of "frustration of purpose" is recognized in the United States, as it allows for the termination of a contract when the principal purpose is frustrated by unforeseen events.