At common law, where frustration is established the contract is terminated automatically (in futuro); there is no option to discharge or to perform and, at common law, the loss resulting from the termination lies where it falls (although there are limited exceptions to that rule).
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.
What is frustration of contract? A contract is frustrated when it becomes impossible to perform due to a “supervening event” – one that isn't the fault of any of the parties, and that they couldn't reasonably have predicted.
Examples of incidents that have been ruled frustration events include: The subject matter of the contract being destroyed by fire or some other disaster. A change of law that makes the performance of the contract illegal.
Frustration-Aggression Theory: Examples A man may not direct his aggression towards his boss, so he shows aggressive behaviour when he comes home later to his family instead. The frustration-aggression hypothesis has been used to explain real-world behaviour such as scapegoating.
Frustration occurs in certain situations where continuing to perform a contract becomes impossible due to an unforeseen event or series of events at neither party's fault. If a contract is frustrated, both parties are discharged from their obligations to perform under that contract.
In some cases a contract will be brought to an end because of a supervening event that is beyond the control of the parties; for example, a contract between A and B, whereby B agrees to hire A's theatre on a particular night may be frustrated if, as a result of a terrorist act the theatre is destroyed prior to the date ...
For example, if a law changes that make selling cars illegal, then contracts that involve cars will likely be frustrated. This is because the performance of that contract cannot be performed, by either party to a contract, and this arises from the illegality prohibiting performance.
Examples of contract frustration include a change in the law, making the performance of a contract illegal. Alternatively, it could be an excessive delay in performance due to unforeseen circumstances. Likewise, a contract will be frustrated if the method of performance of the contract becomes impossible.
The frustration of a contract refers to a legal concept when unforeseen events or circumstances occur that make it impossible or difficult for the parties to fulfill them. These unforeseen circumstances fundamentally alter the terms of the agreement, making it unenforceable, commercially unviable, or impossible.