frustration

Question 1

what is frustration?

Answer 1

a change of circumstances which arises after the contract is made which makes the contract impossible or illegal to perform. causes a fundamental change to parties obligations. gives the party a lawful excuse for the breach

Question 2

what is a force majeure clause?

Answer 2

enables the parties to make provisions for what should happen if particular events happen. usually state that particular events do not give rise to a breach

Question 3

in what circumstances will a contract be discharged due to frustration?

Answer 3

if the subject matter is destroyed/no longer available, if the contract involves personal services, if a change of law makes performance in line with terms illegal, frustration of purpose, specific manner of performance is impossible, extreme delay

Question 4

what was the act made to deal with the consequences of frustrating circumstances?

Answer 4

Law Reform (Frustrated Contract) Act 1943

1. recovery of money paid/payable under contract
2. compensation for expenses
3. payment for valuable benefit received

Question 5

what are the rules on frustration?

Answer 5

it will not release you from a bad bargain and frustration must not be self-induced. the frustration doctrine is capable of applying to a lease