Frustration of Contract - What Happens if a Contract Becomes 'Frustrated'?

Posted in : Supplementary Articles ROI on 11 May 2010
A&L Goodbody
A&L Goodbody
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We might often get frustrated at work but what happens if a contract becomes 'frustrated'? We asked Ailbhe Dennehy to examine the key points that employers should know.

An employment contract can be terminated in a number of ways, including by way of frustration of contract. Simply put, the doctrine of frustration has the effect of discharging any contract if, after its formation, an unforeseen event outside the control of either party, and without the fault of the party seeking to rely on the doctrine, makes the performance of the contract:

1. impossible;
2. illegal; or
3. makes it radically different from that contemplated by the parties at the time of the contract.

Accordingly, such a

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This article is correct at 06/08/2015

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A&L Goodbody
A&L Goodbody

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