ABSTRACT

Once a legally binding agreement has been reached between the parties, failure to perform the obligations undertaken will normally result in liability for breach of contract. This may be unfair if the cause of the failure is beyond the parties’ control. Accordingly, most legal systems make provision for the discharge of a contract where a change of circumstances arises subsequent to its formation, which is beyond the control of either of the parties and prevents the purpose of the contract being attained. At common law, this situation is provided for by the doctrine of frustration. The onus of proving frustration is on the party alleging it.1