ABSTRACT

The vast majority of business agreements proceed to satisfactory completion without disputes or claims that there has been a breach arising. But some commercial ventures may be thwarted because of something happening which is beyond the contracting parties control. So, for instance, the goods contracted for may have perished, making performance impossible. Alternatively war may unexpectedly break out in a country in which components are being made for a UK-based computer company. This may make it difficult for the manufacturer to make or deliver the components. If the war is with the UK, what constituted a legal and legitimate contract for the supply of the components on Monday suddenly becomes trading with the enemy on Tuesday and is rendered unlawful. Events of this kind may make performance of the contract impossible, difficult or illegal. How do the courts respond to such unexpected circumstances? Are the parties absolved from responsibility to perform their contract or do the courts hold them to it? What happens where the parties have already begun performance or been involved in a significant financial outlay in anticipation of performance?