Frustrated contract

Where a contract ends through no fault of either party to the contract.

In order for a contract to be frustrated there must have been some event out of the control of both parties which has wiped out the basis of the agreement.

It could be that the contract is no longer possible to perform for instance if a performance was due to take place at a venue and the venue was destroyed before the event it would be impossible to perform the event at that venue and the contract would end. Circumstances may change and it may become illegal to perform the contract or there may be a change in a situation causing the contract to become pointless for example in Metropolitan Water Board v Dick, Kerr & Co (1918), M had contracted D to construct a reservoir, war then broke out and after the war, circumstances had changed and there was no longer the need for a reservoir.

To be frustrated and therefore ended, a contract must be impossible to perform, it is not sufficient for it just to be more difficult to perform.

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