Frustration of Contracts in the Context of Covid-19
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Frustration of Contracts in the Context of Covid-19
Frustration of Contracts in the Context of Covid-19 where contractual obligations can no longer be performed as a result of unforeseen circumstances that are beyond the control of either party.
In the event there is no “force majeure” clause in a contract, and where performance of the contract has become impossible, in this case due to the current Covid-19 pandemic, frustration may be a possible remedy.
The doctrine of frustration is largely based on reasonableness and fairness. However, it is of narrow scope and it has an extremely high threshold of proof required to successfully claim frustration.
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