Читать книгу Canadian Business Contracts Handbook - Nishan Swais - Страница 56

Cases may arise in which a court invalidates a contract due to frustration. This does not mean that the court is frustrated with the parties but, rather, that circumstances make it impossible for the contract to be performed, despite the actions or intentions of the parties.

Returning to our example: If your factory burns down and all your stock with it, including the forklift that the buyer had ordered, then circumstances would have frustrated the ability of the contract to be carried out. It is impossible to deliver a forklift that no longer exists, regardless of what a contract may require.

It should be noted that a contract ends at the time of frustration. From that point forward, the parties are released from further performing the contract. That said, any rights or obligations that have accrued prior to the event of frustration would still be binding on the parties.

For instance, if a contract became frustrated after it had been partially performed (e.g., a caterer delivers the cake to your wedding but is unable to deliver the cupcakes because the oven suddenly broke down), the party who contracted with the caterer would still have to pay for the cake but not for the cupcakes.