Doctrine of frustration The legal Maxim “Lex non cogit ad impossibilia”. The meaning is the law will not compel a man do what he can not possibly performed.
- A contract is no more where subject matter is no more.
- Where parties to contract die,
- Where parties to contract become disqualifies.
Section 56 of indian contract act Agreement to do impossible act
Doctrine of frustration, An agreement to do an act impossible in itself is void,
Contract to do act afterwards becoming impossible or unlawful –
- A contract to do an act which after the contract is made, becomes impossible. or,
- By reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful.
Compensation for loss in impossible or unlawful contact
Section 56 of the indian contract act, impossible or unlawful-
- Where one person has promised to do something,
- which he knew, or,
- with reasonable diligence,
- might have known,
- And which the promisee did not know, to be impossible.
- Or unlawful, such promisor must make compensation to such promisee for any loss
- which such promisee sustains through the non-performance of the promise.
Satyabrata ghose vs Mugneeram case 1954 Doctrine of frustration
This doctrine lay down rule of positive law and does not leave the matter to be determined according to Intention of the parties.
The basis of Doctrine of frustration explained by SC in this case in which Justice mukherji held that the basis idea, upon which the doctrine of frustration is based is that of impossibility of performance of the contract and the expression, frustration and impossibility can also be used as synonyms.
The Doctrine of frustration is applicable in 2 case:-
- If the object of the contract has become impossible to perform.
- An event has occurred making the performance of the contract to be impossible beyond the control of promisor. Essential possibility
- Death or incapacity
- Virtue of Legislation
- Due to change of circumstances.
Illustration of doctrine of frustration
- (a) A agrees with B to discover treasure by magic. The agreement is void.
- (b) A and B contract to marry each other. Before the time fixed for the marriage. A, goes out of control. The contract becomes void.
- (c) A contracts to marry B, being already married to C, and being forbidden by the law to which he is subject to practise polygamy. A must make compensation to B for the loss caused to her by the non-performance of his promise.
- (d) A contracts to take in cargo for B at a foreign port. A’s Government afterwards declares war against the country in which the port is situated. The contract becomes void when war is declared.
- (e) A contracts to act at a theatre for six months in consideration of a sum paid in advance by B. On several occasions A is too ill to act. The contract to act on those occasions becomes void.