Red Zone For Contracts - Doctrine of frustration by Zerick Dastur

Описание: In this three-part Webinar, the Speaker discusses the impact of COVID [a force majeure event] on contracts, the challenges faced by contract arising out of the pandemic and the learnings from it, the contract aspects of Force Majeure [fundamental clauses to be included] View of the Courts in such matters. A discussion on the Doctrine of Frustration of Contract citing recent case law in support and impact of COVID on lease agreements, rental agreements, and payment of wages are some of the issues discussed.
In the second [of three] part of the webinar, the Speaker discusses the purely legal concept of Discharge by way of frustration [or Doctrine of Frustration where on account of an event/circumstance the performance of the contract is impossible or impractical and agreement has come to end and parties are discharged]. Based on jurisprudence, the principles of frustration [1] Remedy of frustration is an exemption, not the norm. Generally, courts will be reluctant to give reliefs unless in exceptional circumstances. [2] simply because the contract becomes onerous or difficult to perform or expensive or increase in the price of raw material or a commercial risk or something more grave or significant changes or permanent in nature [material natural calamity – earthquake cyclone] it changes the balance of a contract [3] as opposed to FM there is no concept of suspension of obligations – only remedy if you establish frustration - concession will be for the discharge of parties. [4] Some semblance of permanence in the happening of an event to get relief. COVID is its temporary nature hence not frustration. Judicial norm reflected in Energy Watchdog & Ors. v. Central Electricity Regulatory Commission & Ors.

Disclaimer

The information provided in the video is for informational purposes only and are not intended to serve as a substitute for consultation with a lawyer. Specific legal issues, concerns and conditions always require the advice of appropriate legal professionals. Every effort has been made to avoid errors in this video. Any mistake, error or discrepancy noted by the netizens may be brought to the notice of the team along with evidence of it being incorrect.

00:00 Introduction
01:27 Principal of frustration
05:39 Case laws

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