Impossibility Contract Law Example: Understanding the Doctrine of Frustration
In contract law, the doctrine of frustration deals with a situation where unforeseen or unexpected events arise and render the performance of a contract impossible. When such an occurrence takes place, the contract may be deemed frustrated and consequently, the parties involved may be released from their contractual obligations.
An example of an impossibility contract law scenario is where a musician is contracted to perform at a concert, but the venue is damaged by a natural disaster such as a flood or hurricane. In such a case, it would be impossible for the musician to perform as the venue is no longer available. Similarly, if a supplier is contracted to deliver goods to a buyer, but the goods are destroyed in transit due to an accident, the supplier may be released from their contractual obligation to deliver the goods.
It is important to note that frustration only applies to events that were unforeseeable at the time the contract was made. If the event was foreseeable or could have been avoided, then the doctrine of frustration may not be applicable. For example, if a musician contracts to perform at an outdoor venue during the rainy season, they cannot claim frustration if it rains on the day of the concert.
In determining whether a contract has been frustrated, the courts will consider the nature of the event and whether it could have been foreseen or avoided. The court will also consider whether the event has made performance of the contract impossible, and whether the parties have taken reasonable steps to mitigate the impact of the event.
In some cases, the doctrine of frustration may not apply if the contract includes a force majeure clause. A force majeure clause is a contractual provision that outlines the specific events that will release the parties from their obligations under the contract. If the event that has occurred is covered by the force majeure clause, then the parties will be released from their contractual obligations.
In conclusion, the doctrine of frustration is an important aspect of contract law that deals with unforeseen events that make the performance of a contract impossible. It is important to note that frustration only applies to events that are unforeseeable at the time the contract was made and that the parties have taken reasonable steps to mitigate the impact of the event. When drafting a contract, it is essential to consider including a force majeure clause to cover events that may render the performance of the contract impossible.