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9084 · 3.3.3

Frustration

**Frustration** (3.3.3) is the final method of discharging a contract, alongside performance and breach. It deals with situations where unforeseen events make the contract impossible or pointless. A key focus for problem questions is applying the financial remedies under the **Law Reform (Frustrated Contracts) Act 1943**.

Need to know

What you need to know

  • Frustration occurs when a supervening event makes performance impossible, illegal, or radically different.
  • The event must occur after the contract is made and without the fault of either party.
  • It automatically discharges the contract, ending all future obligations.
  • The doctrine is applied narrowly by the courts to uphold the sanctity of contract.

Explanation

Frustration

  1. Frustration occurs when a supervening event makes performance impossible, illegal, or radically different.
  2. The event must occur after the contract is made and without the fault of either party.
  3. It automatically discharges the contract, ending all future obligations.
  4. The doctrine is applied narrowly by the courts to uphold the sanctity of contract.