Breach Of Contract Frustration Agreement

This case is a useful reminder of how difficult it is to find a successful claim to frustration. As Bingham LJ pointed out in Super Servant Two, frustration arises only “to respond to demands for justice, to obtain a just and reasonable result to escape injustice.” But in this case, there was no injustice that required the drastic means of frustration. The date of conclusion of the contract is also relevant for predictability. Whether or not the effects of Covid-19 were foreseeable depends on when the parties entered into a contract. Parties who entered into a contract after Covid-19 received media attention cannot rely on the doctrine of frustration. A contract may be performed on the ground of temporary impossibility if it can only be performed at the time of temporary impossibility. Whether or not there is frustration depends on the contractual conditions, the context and the higher event that is interrupted. The contract must be interpreted. If a party has incurred expenses before the frustrating event occurred, they may try to withhold or recover those expenses from the money paid or payable at the time of frustration….

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