The correct answer is option 'D' - Commercial Impossibility.

Explanation:

Discharge of a contract refers to the termination of contractual obligations between the parties involved. Frustration is a doctrine that can discharge a contract when unforeseen events occur that make it impossible to fulfill the contract's purpose or obligations.

Let's examine each option to understand why 'Commercial Impossibility' is not discharged by frustration:

a) Government Intervention:
If a government intervenes and introduces new regulations or policies that make it impossible or significantly difficult to perform the contract, frustration may apply. For example, if the government bans the import or export of certain goods, it can frustrate a contract involving the sale or purchase of those goods.

b) Destruction of Goods:
If the subject matter of the contract is destroyed or becomes unavailable due to unforeseen circumstances, such as a fire or natural disaster, frustration may apply. For instance, if a contract involves the sale of a specific car model, but that model is destroyed before the contract is fulfilled, frustration may discharge the contract.

c) Change of Law:
If there is a change in the law that renders the performance of the contract illegal or impractical, frustration may apply. For example, if a contract involves the sale of a substance that becomes prohibited by law, frustration may discharge the contract.

d) Commercial Impossibility:
This option is the correct answer because commercial impossibility is not discharged by frustration. Commercial impossibility refers to a situation where performance of the contract becomes economically or financially difficult, but not impossible. Frustration applies when the contract's purpose or obligations become impossible to fulfill, not just difficult or economically burdensome.

Commercial impossibility can be a valid reason to seek contract modification or renegotiation, but it does not automatically discharge the contract. The parties involved must negotiate and find a mutually agreeable solution to address the economic challenges or hardships.

In conclusion, while options a), b), and c) can be discharged by frustration, option d) - Commercial Impossibility - is not discharged by frustration.