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Contractual frustration under English law: doctrine, recognised events, limitations, consequences and the Law Reform (Frustrated Contracts) Act 1943

Practice notes
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Overview

This Practice Note sits within our LLB Contract Law series, designed expressly for law students. It sets out the doctrine of frustration as a route by which contractual duties are discharged in English law. It sketches the conceptual foundations of frustration and separates it from discharge through performance, breach, or mutual agreement. The Note traces the doctrine’s evolution from Taylor v Caldwell [1861–73] All ER Rep 24 to the modern, markedly different approach in Davis Contractors v Fareham UDC [1956] AC 696. It analyses the main classes of frustrating events, including destruction of the subject matter, personal incapacity, failure of a contemplated event to occur, supervening illegality, and war, and explores the doctrine’s boundaries, including self-induced frustration and agreements in which the parties have allocated risk. It also sets out the legal effects, namely automatic discharge and the statutory reallocation of losses under the Law Reform (Frustrated Contracts) Act 1943. It concludes by emphasising the doctrine’s limited reach and its function in calibrating certainty with fairness in exceptional cases. It remains a narrow doctrine used only in truly exceptional circumstances in practice.

Introduction

Once a contract is validly made, the parties are obliged to fulfil their primary duties. However,...

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