Contract Law

Ceasing the Contract

Frustration

At times it becomes impossible to complete the performance of a contract to its desired outcome. This can be the result of a change in government policy, a court injunction, a natural disaster, a war, or a range of other things. When performance is impossible due extraneous factors that the parties have no control over and could not anticipate, we call this frustration. When recognised by a court, frustration allows a contract to be terminated with no award of damages claimable by either party.

 

A court declares a contract frustrated when continuing the performance of obligations requires very different actions from those agreed to. The bar is set high because courts try to keep contracts afoot.

 

A party’s own failure to perform is different...

 

ORDER FOR FULL TEXT.

 

 

 

[1] Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337.

 

Written by Andrew Pingree. All copyright, 2014-2016 vests in Civilaco Pty Ltd.

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