frustration
- Created by: Rachel
- Created on: 21-04-14 09:45
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- Frustration
- Contracts are often silent on position of parties where something happens after formation of contract which makes its performance
- impossible
- only possible in a very different way than originally contemplated
- Doctrine of frustration operates to excuse from further performance where
- it appears from nature of contract and surrounding circumstances that the parties have contracted on the basis that some fundamental thing will continue to exist
- or that some particular person will continue to be available
- or future event which forms the basis of contract will take place
- before breach an event in relation to the matter in 1 renders performance impossible or only possible in a very different way from that contemplated
- it appears from nature of contract and surrounding circumstances that the parties have contracted on the basis that some fundamental thing will continue to exist
- In more recent times 5 propositions have been set out as the essence of the doctrine
- doctrine of frustration has evolved to make the laws insistence of absolute promises less serious to give effect to justice
- helps achieve a just and reasonable result and to do whats reasonable and fair
- which avoids enforcing a contract in its literal terms after a significant change in circumstances
- helps achieve a just and reasonable result and to do whats reasonable and fair
- EFFECT OF FRUSTRATION
- kill the contract and discharge parties from further liability under it
- bring contract to and end automatically
- Frustration shouldn't be used due to the sole choice of party seeking to rely on it but due to an outside event or unexpected change of situation
- that event must take place without blame or fault of the party seeking to rely on it
- can't be because contract has become more difficult
- if parties treat a contract as remaining in force until a later stage in dispute doesn't automatically rule out frustration
- that event must take place without blame or fault of the party seeking to rely on it
- doctrine of frustration has evolved to make the laws insistence of absolute promises less serious to give effect to justice
- Contracts are often silent on position of parties where something happens after formation of contract which makes its performance
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