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Discuss the scope of the doctrine and remedies for frustration of contract in English law, in particular under the Law Reform (Frustrated Contracts) Act 1943 and in the use of ‘force majeure’ clauses. Is the law as it stands in a satisfactory state?
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Discuss the scope of the doctrine and remedies for frustration of contract in English law, in particular under the Law Reform (Frustrated Contracts) Act 1943 and in the use of 'force majeure' clauses. Is the law as it stands in a satisfactory state? The courts have interpreted the scope of the doctrine of frustration narrowly, in accordance with the principle pacta sunt servanda - agreements must be kept. If the courts readily held that a contract was frustrated, it would cast significant doubt on an array of agreements that make commerical enterprise possible. As Lord Radcliffe advised in Davis Contractors Ltd v Fareham UDC, "[f]rustration is not to be lightly invoked as the dissolvent of a contract."i This discussion will first examine the underlying reasons for the narrowness of the doctrine before considering the specific limitations. Here it will be argued that in some instances the courts' decisions have been inconsistent and...
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