Discharge by Supervening Impossibility — The Doctrine of Frustration

Section 56 of the Indian Contract Act provides: an agreement to do an act impossible in itself is void, and a contract to do an act which, after the contract is made, becomes impossible, or, by reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful. This is known as the Doctrine of Frustration — the contract is said to be "frustrated" by an event beyond either party's control.

Recognised grounds of supervening impossibility (frustration):

• Destruction of the subject-matter — the specific thing essential to performing the contract is destroyed, without either party's fault, before performance is due (e.g. a music hall hired for a concert burns down before the event date).
• Death or incapacity of the party — where the contract requires the personal skill or performance of a particular individual (e.g. a portrait painter, a specific performer), their death or serious incapacitating illness frustrates the contract.
• Change of law — a change in the law, or a government/administrative order, made after the contract, renders performance of the contract unlawful.
• Outbreak of war — a declaration of war between the countries of the contracting parties can render the contract illegal to perform (as trading with an enemy alien) or make its performance commercially impracticable.
• Non-occurrence of a contemplated event — where a contract was made specifically in contemplation of the happening of some particular event, and that event does not occur (e.g. hiring a room specifically to view a procession that is subsequently cancelled). …