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ARTICLE · 17 JANUARY 2001

Frustrating Employment Contracts

United KingdomEmployment and HR

Where a contract of employment is frustrated it is terminated by operation of law and there is no dismissal. Consequently, the employee is unable to make a claim for unfair dismissal. It follows that in unfair dismissal cases it benefits the employer to assert that the contract has been frustrated and for the employee to allege that it has not. Frustration occurs where 'without default of either party a contractual obligation has become incapable of being performed'.

Essential Facts Necessary To Frustrate A Contract

  • There must be some external change in a situation that is not foreseen or provided for by the parties at the time of contracting that either makes it impossible for the contract to be performed at all or at least renders its performance radically different from that which the parties originally contemplated
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