Frustration … bite size

This is where something happens, through no fault of the parties, which makes the performance of a contract impossible. The contract is said to be frustrated and the obligations under it come to an end.

Only certain types of event can result in frustration. They include:

• The destruction or unavailability of something essential for the performance of the contract
• Death of either party
• Unavailability of one party
• The method of performance is impossible
• After the contract is formed, a change in the law makes its performance illegal
• Where a supervening event makes the performance of a contract completely pointless, even if still technically possible.

The courts will only use frustration in exception circumstances.

Key cases:

Taylor v Caldwell (1863)

Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour Ltd (1943)