Grounds for Doctrine of Frustration
1. Impossibility of Performance: The doctrine is triggered when the performance of a contract becomes impossible. This not only includes physical impossibility but also includes situations where the performance becomes impracticable, and the subject matter of the contract is disrupted.
2. Destruction of Subject Matter: Destruction of the contract’s subject matter is another case when the doctrine of frustration comes into play. So, due to this, the destruction of the subject matter of the contract becomes impossible to perform.
3. Death or Incapacity of a Party: In cases where the contract is based upon the personal performance of a party, the doctrine of frustration will come into action. If the person on whose performance the contract was based has died or becomes incapacitated to contract, in such a case the contract will be void.
4. Frustration by Legal or Government Intervention: In the case where a subsequent law is enacted that ultimately disrupts the foundation of the contract that was formed before such enactment, the contract becomes void as the performance is not possible.
5. Frustration due to a Change of Circumstances: This occurs when the impossibility is not due to a physical impossibility, but there has been a change in circumstances that defeats the primary purpose of the contract. The changes in the circumstances dissolve the contract.
6. The Intervention of War: The performance of any contract can also be disrupted if there is an outbreak of war. If the war has made the performance of the contract difficult or impossible to perform, the contract will be void and the doctrine of frustration shall be invoked.
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