Doctrine of Frustration
Contract assignment
Doctrine of frustration
Doctrine of frustration
ACCORDING to Section 56, an agreement to do an act impossible in itself is void (for example, an agreement to discover treasure by magic). Supervening impossibility or illegality refers to the intrusion or occurrence of an unexpected event or change of circumstances beyond the contemplation of the parties; such event or change of circumstances must be so fundamental as to be regarded by law as striking at the root of contract as a whole or the basis of the contract no longer exists.
Subsequent impossibility in the UK is referred to as Doctrine of Frustration. A contract is deemed to have become impossible of performance and, thus, void under the following circumstances:
a) Destruction of the subject matter of the contract;
b) By death or permanent incapacity of the parties (like insanity) where the contract is personal in nature;
c) Supervening impossibility or illegality, involving actions contrary to law or public policy;
d) Outbreak of war, war restrictions (avoidance of trading with alien enemy, and so on);
e) Imposition of government restriction or orders or acquisition by government; and
f) Non-existence or non-occurrence of a particular state of things.
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. .
FRUSTRATION - MEANING, SCOPE AND APPLICABILITY
Section 56 of the Indian Contract Act, 1872 stipulates:
"Agreement to do impossible act: An agreement to do an act impossible in itself is void.
Contract to do act afterwards becoming impossible or unlawful: A contract to do an act which, after the contract is made, becomes impossible, or, by reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful.
Compensation for loss through non-performance of act known to be
Doctrine of frustration
Doctrine of frustration
ACCORDING to Section 56, an agreement to do an act impossible in itself is void (for example, an agreement to discover treasure by magic). Supervening impossibility or illegality refers to the intrusion or occurrence of an unexpected event or change of circumstances beyond the contemplation of the parties; such event or change of circumstances must be so fundamental as to be regarded by law as striking at the root of contract as a whole or the basis of the contract no longer exists.
Subsequent impossibility in the UK is referred to as Doctrine of Frustration. A contract is deemed to have become impossible of performance and, thus, void under the following circumstances:
a) Destruction of the subject matter of the contract;
b) By death or permanent incapacity of the parties (like insanity) where the contract is personal in nature;
c) Supervening impossibility or illegality, involving actions contrary to law or public policy;
d) Outbreak of war, war restrictions (avoidance of trading with alien enemy, and so on);
e) Imposition of government restriction or orders or acquisition by government; and
f) Non-existence or non-occurrence of a particular state of things.
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. .
FRUSTRATION - MEANING, SCOPE AND APPLICABILITY
Section 56 of the Indian Contract Act, 1872 stipulates:
"Agreement to do impossible act: An agreement to do an act impossible in itself is void.
Contract to do act afterwards becoming impossible or unlawful: A contract to do an act which, after the contract is made, becomes impossible, or, by reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful.
Compensation for loss through non-performance of act known to be