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Intervening circumstances (frustration)

last updated: 30th June 2011

Where circumstances beyond the reasonable control of the parties occur, such that the contract becomes impossible to perform, the party directly affected by such circumstances may be relieved of its obligations under the contract. A contract may include a term, usually known as the 'force majeure clause' which sets out the circumstances in which the contract ends, otherwise the matter is decided by the courts which adopt a narrow approach.

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