Frustration of Purpose

Question 1

What is Frustration of Purpose?

Answer 1

The contract is not strictly impossible to perform, but an event has happened to make it such that at least one party’s purpose in entering the contract no longer exists

Question 2

3 steps of frustration or purpose

Answer 2

1. The purpose that is frustrated must have been a principal purpose of that party in making the contract
2. Frustration must be substantial
3. The non-occurrence of the frustrating event must have been a basic assumption on which the contract was made

Question 3

Discharge by frustration of purpose can only be made by?

Answer 3

A party whose purpose is frustrated without his own fault

Question 4

If the frustration is foreseeable is it excused?

Answer 4

NO, if it is foreseeable frustration is not available because the have essentially allocated the risks which then fall where they land