Frustration Definition

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GLOSSARY

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What does Frustration mean?

Where unforeseen circumstances prevent the performance of a contract so that it may be treated as discharged.

A contract is brought to an end by frustration where, despite the parties having reached agreement, a question arises concerning the existence or non-existence of some fact, or the occurrence or non-occurrence of some event, that destroys the basis upon which that agreement was reached so that the agreement is discharged or in some other way vitiated.

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Discharge by frustration

This Practice Note summarises how the common law doctrine of frustration may operate to discharge an agreement and the legal consequences of a contract being frustrated, including issues of partial frustration, party at fault (self-induced frustration) and examples of types of frustrating event. See also Practice Notes:•Frustration event analysis—a practical guide•Frustration—key and illustrative decisionsFor guidance on drafting a notice asserting frustration of a contract, see Precedent: Contract frustration notice.Interest in the doctrine of frustration has come to the fore in light of recent world events such as the coronavirus (COVID-19) pandemic in 2020 and Russia’s invasion of Ukraine in 2022. Links to general guidance with regard to contractual relations and these world events is provided in the current world events section below.Frustration is distinct from the concept of force majeure, on which see Practice Note: Force majeure—consequences and contract discharge and related content.What is frustration?Frustration is a common law doctrine which operates to bring an agreement to an end on the happening of some unforeseen supervening event which is beyond...

Force majeure—consequences and contract discharge

Force majeure—consequences and contract discharge This Practice Note considers force majeure as it applies in English law and the circumstances in which a force majeure event may cause a contract to come to an end, including burden of proof, interpretation of force majeure clauses (operative verb), procedural requirements and challenging the validity of a force majeure clause. See also Practice Notes: • Force majeure clause analysis—a practical guide • Force majeure—key and illustrative decisions For assistance when giving notice of a force majeure event, see Precedent: Force majeure notice. Force majeure clauses were thrust under the microscope in light of ‘world events’, such as the coronavirus (COVID-19) pandemic in 2020 and Russia’s invasion of Ukraine in 2022, on which see: Force majeure and current world events below. Force majeure—meaning and nature The key features of force majeure are: • a 'force majeure clause' is a contractual term providing for one (or both) parties to be excused from performance on the happening of a specified event outside the parties' control •...

Discover our 2 Practice Notes on Frustration

Contract frustration notice

Contract frustration notice Dear [insert name of Party B or its representative] [insert name and date of agreement] [Our client: [insert client name] OR [Insert name Party A]] [Your client: [insert client name] OR [Insert name Party B]] 1 [ [As you are aware, we OR We] act for [insert client name] ([insert Party A short name]).] 2 [We are writing with formal confirmation of the information conveyed to you in the [letter OR e-mail OR telephone call] of [insert date] from [insert sender] to [insert recipient].] 3 [Our client OR [insert short name Party A]] and [your client OR [insert name Party B]] ([insert short name Party B]) are parties to an agreement dated [insert date] for [set out the type of agreement eg for the supply of goods] (the Agreement). 4 Under clause [insert number] of the Agreement [our client OR [insert short name Party A]] agreed [briefly set out the impacted contractual obligation including the time for compliance where this is relevant]....

Legal opinion letter: for a ship finance transaction

Legal opinion letter: for a ship finance transaction [Headed notepaper of law firm issuing the opinion] [insert name and address of Lender] [insert date] Dear [insert name of Lender] Facility Agreement dated [insert date] between [insert name of lender] (the Lender) and [insert name of borrower] (the Borrower) (the Facility Agreement) We refer to [insert number of clause which requires delivery of legal opinion] of the Facility Agreement. This opinion is given in satisfaction of that clause. Unless otherwise defined in this opinion, defined terms in the Facility Agreement shall have the same meanings when used in this opinion. This opinion is governed by English law and is subject to the exclusive jurisdiction of the English courts. 1 Background 1.1 This opinion is given in relation to the English law aspects of a transaction (the Transaction) by which [insert description of transaction]. 1.2 We have acted as English law legal advisers to [insert name of clients] in relation to the Transaction. 1.3 This opinion is...

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