Termination Of Contract For Frustration In Middlesex
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A frustration of contract means that the contract is no longer valid as a circumstance has arisen that has not been addressed in the contract.
As mentioned earlier, frustration is a rare remedy in contract law. Since it discharges the contract, it effectively terminates the parties' future obligations. However, it's important to remember that frustration isn't a cure-all solution and not all contractual disputes can be resolved through this doctrine.
3 Importantly, to give rise to frustration, the triggering event must cause disruption to contractual performance that is permanent (or at least substantially so), as opposed to temporary or transient. 4 The remedy for frustration is to discharge both parties of their obligations to perform on a going-forward basis.
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.”
The doctrine of frustration discharges both parties from their contractual obligations where following the formation of the contract, performance of the contractual obligations become either: Impossible; or. Radically different.
If the individual is unable to work, through no fault of either party, then the contract may be frustrated. In that case, the employer is not terminating the employee's employment, and the employee is not resigning. Rather, the contract simply comes to an end.
The doctrine of frustration states that frustration occurs when an unforeseen event renders performance of a contract impossible or radically different from that originally contemplated by the parties. No party is considered at fault. If a contract is found to be frustrated, it is automatically terminated.
To demonstrate frustration effectively, the following elements must be present: Supervening event – the event that leads to frustration must occur after the formation of the contract, and it must be beyond the control of the parties at the time the contract was made.
