Is your business facing a drastically altered reality as a
result of COVID-19? Is it putting your ability to fulfil your
contracts in doubt?
In our previous article, we talked about force majeure clauses
and how they might assist parties navigating the current landscape
here.
Even in the absence of a force majeure clause, there can be
circumstances where the changes caused by the COVID-19 pandemic
would render a contract unenforceable.
The legal principle that applies is known as the doctrine of
frustration.
In this article, we will explain how the doctrine of frustration
might apply, in the absence of a force majeure clause.
What is frustration?
Contracts are said to be "frustrated" at law when the
circumstances change so fundamentally, through no fault of the
parties, that performing the contract becomes either impossible, or
something radically different to what the parties had agreed to
do.
