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.
Taylor v Caldwell (1863)
Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour Ltd (1943)