• 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
    • 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
        • 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


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