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A contract may be automatically discharged under the doctrine of frustration. This can only occur when the effect of external circumstances render further performance of the contract impossible, render it illegal or brings about a drastic change in circum
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1. A contract may be automatically discharged under the doctrine of frustration. This can only occur when the effect of external circumstances render further performance of the contract impossible, render it illegal or brings about a drastic change in circumstances. This means that the contract would become something drastically different from that which was originally undertaken. When establishing if a contract can be discharged by frustration cases must fall into one of three different situations. Taylor v Caldwell (1863)1 is a prime example of impossibility, due to the subject matter being destroyed. In this case the contract involving the hiring of a music hall was held to be frustrated as the hall was destroyed by a fire. A contract may also be frustrated if the subject matter becomes unavailable due to an event completely unrelated to the contract. Nickoll and Knight V Ashton Eldridge Co (1901)2. This principal also...
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