Frustration occurs where, without fault of either party, an event after formation makes performance physically impossible, illegal, or radically different from what was undertaken. The doctrine discharges both parties from further obligations as a matter of law.
The modern test, from Davis Contractors v Fareham UDC and refined in National Carriers v Panalpina, is whether the supervening event so transforms the obligation that it would be unjust to hold the parties to their original bargain — a "radical change in the obligation."
Classic categories include destruction of the subject matter (Taylor v Caldwell), supervening illegality, frustration of common purpose (Krell v Henry), and personal incapacity. Self-induced frustration, mere hardship, and events expressly provided for in the contract do not qualify.
The Law Reform (Frustrated Contracts) Act 1943 governs the financial consequences: money paid before frustration is recoverable, and just sums may be awarded for valuable benefits conferred or expenses reasonably incurred.
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25 landmark · 0 recent judgments · 19 semantic matches for “Frustration”