levo

Discharge of a Contract

Frustration of a Contract

  • 2 things to know
  • Paper 3

Overview

Recall questions on what frustration is and when it discharges a contract, why foreseeable, self-induced or provided-for events do not count, and frustration through destruction, illegality, non-occurrence and personal incapacity.

What you need to know

Answer each one before you reveal it.

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Key term

What conditions must be satisfied for frustration to discharge a contract?

Key term

How may destruction of subject matter lead to frustration?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is frustration of a contract?

    Model answer

    Frustration discharges a contract when an unforeseen event occurs after formation that makes performance impossible, illegal, or radically different from what was contemplated.

  2. 2

    What conditions must be satisfied for frustration to discharge a contract?

    Model answer

    The frustrating event must arise from an event that is not the fault of either party and was not provided for in the contract.

  3. 3

    Does self-induced frustration discharge a contract?

    Model answer

    No, self-induced frustration does not discharge a contract.

  4. 4

    Define frustration of a contract.

    Model answer

    Frustration discharges a contract when an unforeseen event occurs after formation that makes performance impossible, illegal, or radically different from what was contemplated.

  5. 5

    At what point does frustration discharge a contract, and how does this occur?

    Model answer

    Frustration operates automatically to discharge the contract from the moment the frustrating event occurs.

  6. 6

    Why will a contract not be frustrated where the event was foreseeable?

    Model answer

    A foreseeable event cannot frustrate a contract because the parties could have anticipated it and made provision for it in their agreement.

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