CONTRACT LAW REVIEW NOTES
FRUSTRATION
• The doctrine of frustration provides one of the ways by which
contractual obligations end.
• Lord Radcliffe- Problem must arise without the default of either
party.
• The discharge occurs as a result of the wrongful actions of one of
the parties.
• Where a contract is discharged by frustration, this occurs
automatically by operation of law.
• The courts decide when a contract has been frustrated and, if
they decide that it has, then all future obligations cease.
The nature of the frustrating event:
Lord Radcliffe in Davis v Fareham urban district council,
Frustration occurs whenever the law recognizes that without
default of either party a contractual obligation has become
incapable of being performed because the circumstances in which
performance is called for would render it a thing radically different
from that which was undertaken by the contract...it was not this
that I promised to do.
• In deciding whether a contract has been frustrated the court must
take into account :
The terms of the contract itself, its matrix or context, the parties’
knowledge, expectations assumptions and contemplations, in
particular as to risk, as to the time of contract, at any rate so far as
these can be ascribed mutually and objectively ascertainable
calculations as to the possibilities of future performance in the
new circumstances.
• Courts have indicated that a contract will be frustrated only
where there is a complete change between what was
undertaken in the contract and the circumstances in which it is
called upon to be performed.
• CTI group v Transclear 2008, the COA concluded that a contract to
sell cement was not frustrated where the contract remained
FRUSTRATION
• The doctrine of frustration provides one of the ways by which
contractual obligations end.
• Lord Radcliffe- Problem must arise without the default of either
party.
• The discharge occurs as a result of the wrongful actions of one of
the parties.
• Where a contract is discharged by frustration, this occurs
automatically by operation of law.
• The courts decide when a contract has been frustrated and, if
they decide that it has, then all future obligations cease.
The nature of the frustrating event:
Lord Radcliffe in Davis v Fareham urban district council,
Frustration occurs whenever the law recognizes that without
default of either party a contractual obligation has become
incapable of being performed because the circumstances in which
performance is called for would render it a thing radically different
from that which was undertaken by the contract...it was not this
that I promised to do.
• In deciding whether a contract has been frustrated the court must
take into account :
The terms of the contract itself, its matrix or context, the parties’
knowledge, expectations assumptions and contemplations, in
particular as to risk, as to the time of contract, at any rate so far as
these can be ascribed mutually and objectively ascertainable
calculations as to the possibilities of future performance in the
new circumstances.
• Courts have indicated that a contract will be frustrated only
where there is a complete change between what was
undertaken in the contract and the circumstances in which it is
called upon to be performed.
• CTI group v Transclear 2008, the COA concluded that a contract to
sell cement was not frustrated where the contract remained
