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.