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Assignment of Doctrine of Frustration
Assignment of Doctrine of Frustration
Doctrine of Frustration
Submitted To
Sir G. M. Chaudhry
Submitted by
Hamid Mukhtar
MBA- IV
01151011004
Bingham LJ gave following five suggestions which he regarded as the essence of the
doctrine:
Supervening Events
According to Section 56 of Indian Contract Act, 1872 following are the possible subsequent
events that causes to make a contract void
Apart from the above circumstances, impossibility does not discharge a person from the
contract. He who agrees to do an act should do it unless impossibility arises in any of the
ways mentioned above.
On the other hand, the following events have been regarded as insufficient to give rise to
the frustration of any underlying contract by English law:
Contract for personal performance frustrated because accident of concern person made it
impossible to perform
Contract to carry drilling rig in one of the two vessels owned. SS II sanked and D claimed
contract frustrated. Held: D had chosen to use SS I on another contract as SS I contract
was made after SS II. D negotiated extra payment to use SS I. This indicates that D
attempted to use frustration to avoid an agreement which had become inconvenient.
Rented suite room to watch coronation procession. Price of room reflected the significant
event. Coronation was called off due to king’s illness. Held: that the procession was the
foundation of the contract and event renders the contract incapable of performance due to
non-existence of express condition which goes to the root of the contract which is
essential to its performance. Contract was frustrated.
Tsarkiroglou v Noblee Thorl
Suez canal closed. Journey can continue with a much longer route. Performance had only
become onerous or more expensive; performance still possible; manner of performance
not specified. Contract not frustrated.
Labor shortage caused delay and cost more. Held: that the risk events can reasonably be
expected to occur. Circumstances did not make performance radically different from
what was expected. Performance only become more burdensome and did not change the
nature of what was expected to do. Contract not frustrated.
Hired steamboat to watch naval review during the King’s coronation day. Held: that
inability to watch naval review during coronation was not fundamental to the contract as
pleasure trip still possible. Contract is not frustrated.
Redevelopment became difficult and impossible. Held: that it did not mean that there was
no purpose at all to the contract. It only had become not so lucrative as expected.
Contract not frustrated.