Introduction of the Doctrine of Frustration

When parties enter into contracts, it creates a contractual duty and responsibility on them to perform the contract. However, contract fulfilment is frequently

Doctrine of frustration

The fundamental principle of contracts provides that the parties to the contract must perform their contractual responsibilities, and in the event of a violation, the party violating the contract

Under the Indian Contract Act, the theory of Frustration

The phrase “Frustration of Contract” is not defined under the Indian Contract Act of 1872. Sec. 56 of the Act, on the other hand, enshrines the theory of frustration, declares that a contract to perform an

Syed Khursheed Ali vs. the State of Orissa

In this aspect, the Court decided that the doctrine u/s 56 is invoked in the case of a subsequent unforeseeable incident for which neither party is liable.

Conditions required to demonstrate frustration of contract

1. The existence of a legally binding contract; 2. The contract has not yet been fulfilled; 3. The contract’s performance has become unfeasible; 4. The impossibility arose as a result of an unforeseeable incident for both parties.

Reasons for the Doctrine of Frustration

1. Performance impossibility 2. Destruction of the subject matter 3.A party’s death or Incapacity 4. Frustration caused by legal or govt. Intervention 5. War Intervention

Effect & consequences of the Frustration Doctrine

1. The contract is inherently void & frustrated

2. Further liabilities are discharged

3.Accrued obligations

Conclusion of the Doctrine of Frustration

When an unforeseeable incident occurs that makes contract execution unfeasible, the doctrine of frustration comes into effect. The contract becomes void when it is frustrating

See more Articles at the end of the learn more page

1. Doctrine of Lis Pendens in Transfer of Property Act

2. Contract of Bailment under the Indian Contract Law

3. Define Consideration and its Essential Elements ICA 1872

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