Frustration of contract
A contract is frustrated — and automatically discharged — where, after it is formed, an unforeseen event for which neither party is at fault makes performance impossible, illegal, or radically different from what was agreed.
Last reviewed 14 June 2026
The doctrine began with Taylor v Caldwell (1863) 3 B & S 826 (a music hall destroyed by fire before the booking) and was framed in modern terms in Davis Contractors Ltd v Fareham UDC [1956] AC 696: performance must be radically different, not merely more onerous.
Mere hardship, increased cost, or a bad bargain do not frustrate a contract. Where the doctrine applies, the Law Reform (Frustrated Contracts) Act 1943 governs the financial consequences.
Key cases
- Taylor v Caldwell (1863) 3 B & S 826
- Davis Contractors Ltd v Fareham UDC [1956] AC 696
- Krell v Henry [1903] 2 KB 740
Frequently asked questions
What is frustration of contract?
The automatic discharge of a contract when an unforeseen, non-fault event makes performance impossible, illegal or radically different from what was undertaken (Davis Contractors v Fareham).
Does extra cost or hardship frustrate a contract?
No. Performance becoming more expensive or onerous is not enough — it must be radically different from what was agreed.
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