
Contents
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I Introduction I Introduction
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II Theories of the Doctrine of Frustration II Theories of the Doctrine of Frustration
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III Frustration under the Contract Act III Frustration under the Contract Act
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IV Absolute Obligation IV Absolute Obligation
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V Allocation of Risks V Allocation of Risks
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VI Contingent Contracts VI Contingent Contracts
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VII Impossibility VII Impossibility
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1 Paragraph 1 of Section 56 1 Paragraph 1 of Section 56
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2 Paragraph 2 of Section 56 2 Paragraph 2 of Section 56
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3 Paragraph 3 of Section 56 3 Paragraph 3 of Section 56
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VIII Subsequent Impossibility VIII Subsequent Impossibility
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1 Event Must Be Unforeseen 1 Event Must Be Unforeseen
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2 Event Must be Beyond the Control of Parties 2 Event Must be Beyond the Control of Parties
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3 Factors Relevant to Deciding Impossibility 3 Factors Relevant to Deciding Impossibility
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IX Situations of Impossibility IX Situations of Impossibility
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1 Destruction of Subject Matter or of Something Essential to Performance 1 Destruction of Subject Matter or of Something Essential to Performance
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2. Non-availability 2. Non-availability
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3 Death or Incapacity of Parties 3 Death or Incapacity of Parties
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4 Delay 4 Delay
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5 Impracticality 5 Impracticality
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X Subsequent Unlawfulness X Subsequent Unlawfulness
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XI Leases and Transfers of Property XI Leases and Transfers of Property
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XII No Frustration XII No Frustration
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1 Contractual Provisions 1 Contractual Provisions
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i Absolute obligation i Absolute obligation
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ii Force majeure clauses ii Force majeure clauses
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2 Self-Induced Frustration 2 Self-Induced Frustration
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3 Particular Agreements 3 Particular Agreements
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XIII Effect of Frustration XIII Effect of Frustration
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1 Automatic Discharge 1 Automatic Discharge
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2 Compensation 2 Compensation
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3 Force Majeure Clauses 3 Force Majeure Clauses
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4 Return of Advantage or Compensation 4 Return of Advantage or Compensation
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5 Events after Discharge 5 Events after Discharge
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XIV Conclusion XIV Conclusion
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Cite
Abstract
This chapter studies the effect of supervening events on contracts. The law discharges a promisor when subsequent events or circumstances beyond the promisor’s control make its performance impossible or substantially frustrate the principal purpose of the contract; the contract could also be discharged by illegality or a contingency stipulatedin the contract coming to pass. Frustration ends the contract prospectively and relieves a party from that party’s contractual obligations. The doctrine of frustration reconciles the rule of absolute contracts with the need for making exceptions to meet the demands of justice. The chapter also touches upon new issues and challenges pertaining to the application of the doctrine of frustration in the wake of the COVID-19 pandemic.
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