The Doctrine of Frustration: When Contractual Obligations Become Impossible
The Doctrine of Frustration: When Contractual Obligations Become Impossible Contracts are the backbone of commercial transactions, but what happens when circumstances change beyond the control of the parties, making it impossible to perform the obligations under the contract? Contracts form the basis of business transactions, with parties relying on each other to fulfill their obligations. However, there are times when unforeseen events or circumstances arise, rendering it impossible to perform the contract. This is where the doctrine of frustration comes into play. Under section 56 of the Indian Contract Act, 1872, a contract can be discharged on the grounds of subsequent impossibility if an unexpected event or change of circumstances occurs, which was beyond the control of the parties and fundamentally alters the purpose or basis of the contract. The use of the word "impossible" in this context does not refer to literal or physical impossibility but rather the impract...