Frustration In A Contract.docx

FRUSTRATION IN A CONTRACT INTRODUCTION  Legal termination of a contract due to unforeseen circumstances that (1) Prevent achievement of its objectives. (2) Render its performance illegal. (3) Make it practically impossible to execute.

 It could be caused by reasons such as an accident, change in law, fire, sickness of one of the parties, thirdparty interference.  Frustration of a contract excuses non-performance and automatically discharges the contract except where the terms of contract override this implied legal provision.  Frustration is not acceptable as an excuse where the circumstance was foreseeable, and is not applicable to certain types of contracts such as insurance policies.