Wednesday, August 24, 2011

Frustration of a contract

Frustration is one of the events that excuses performance under a contract.Other events include things such as subsequently illegality, impossibility of performance, impracticability of performance, rescission, novation and lapse of the contract.

The event of frustration is unforeseen and uncontrollable and makes it impossible for one of the parties to fulfill their commitment.The party that is frustrated in their performance of the contract may rescind the the contract and not perform without any liability.

Examples of frustration could be a number of things: destruction of the goods prior to purchase; damage to premises before work was scheduled to perform; intervention by public authorities that would prevent the work to be done; rulings by government authorities that would prevent the work being performed.The key is the event must be unforeseen and uncontrollable.

If a party failed to allow access to the work or failed to provide items they were required to provide during the agreement making the suppliers work be unable to be performed, the supplier would argue that their performance was deliberately prevented by the Buyer. Those types of acts would not allow the Supplier to rescind the contract and be excused of performance. Since the owner or buyer failed to meet their obligations and in effect breached the contract, the supplier could sue the supplier for breach to recover any damages they sustained.

No comments:

Post a Comment