The doctrine of frustration under section 56 of the Indian Contract Act

Mohan, M. P. Ram; Murugavelu, Promode; Ray, Gaurav; Parakh, Kritika

doi:10.1080/24730580.2019.1709774

Cited by 3 publications

(2 citation statements)

References 2 publications

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“…The general rule is that when parties enter into a contract, they and their counterparty have to perform their contractual obligations as per CA 1950. However, the doctrine of frustration is an exclusion of this rule (Kumar, 2019). While the force majeure clause is a "creature of contract" (Rajan & Lim, 2020), conversely the doctrine of frustration in Malaysia is a "creature of statute" that is codified under Section 57(2) of the CA 1950.…”

Section: Doctrine Of Frustration In Malaysia Law Contracts Amid Covid...mentioning

confidence: 99%

The Impact of Covid-19 on Contractual Obligations in Malaysia

Kheng Aik,

MOSLEMZADEH TEHRANI

2023

UUMJLS

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The widespread Covid-19 pandemic has significantly impacted business and commerce across the globe, including Malaysia. As aresult, businesses throughout Malaysia may face the inability to perform their contractual obligations and may seek to determine whether they or their counterparty have any legal basis for the non-performance of those contractual obligations. This research used content analysis by categorizing the same theme and discussing the wording adopted in Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020, force majeure clause, and the doctrine of frustration in Malaysia. The Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020 is one of the defenses available to excuse the non-performance of contractual obligations due to Covid-19. However, the Covid-19 act is relatively new, and no precedent has been established to interpret the vague language adopted in the act. It was found that financial hardship can be a ground for non-performance of contractual obligations. Alternatively, contractual parties may invoke the force majeure clause that is provided in a contract. However, the ability to seek relief for force majeure events depends on the precise wording adopted in the clause. In the absence of a force majeure clause, the contractual parties may consider the doctrine of frustration. However, frustration is not a straightforward doctrine to reckon with. This research will provide insight into contractual parties on their rights, remedies, and repercussions if they choose to terminate the contract due to the widespread Covid-19 pandemic.

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Section: Doctrine Of Frustration In Malaysia Law Contracts Amid Covid...mentioning

confidence: 99%

The Impact of Covid-19 on Contractual Obligations in Malaysia

Kheng Aik,

MOSLEMZADEH TEHRANI

2023

UUMJLS

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“…This article discourses why the doctrine of frustration in the purview of section 57(2) of the Contracts Act 1950 is narrow and limited in its application. The common law doctrine of frustration will also be scrutinized because even though the law on frustration derives from a statute, the Courts' interpretation of the doctrine is similar in spirit to the English common law doctrine of frustration (Mohan, Murugavelu, Ray, & Parakh, 2020). The author encourages the use of force majeure clause to enable parties to allocate risk by making express provisions for what should happen to their bargain upon the occurrence of certain events such as Covid-19.…”

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confidence: 99%

The Legality of Doctrine of Frustration in the Realm of Covid-19 Pandemic

Jayabalan

2020

SCJ

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The outbreak of the novel coronavirus (“COVID-19-Outbreak”) has a potential impact in the performance of a contract. If a contract does not contain a force majeure clause, a contracting party may look to the common law doctrine of frustration to relieve it from its obligations. Unlike force majeure clauses which focuses on the parties' express intention on how to deal with supervening events, frustration is implied by law and thus would only be considered in the absence of an express force majeure clause. In Malaysia, the doctrine of frustration is codified in section 57(2) of the Contracts Act 1957. A doctrinal analogy of the doctrine of frustration and section 57 of the Contracts Act 1950 indicates a pandemic such as the covid-19 would not frustrate a contract. Force majeure clause should be used as a protective tool to prevent losses to the contracting parties or alternatively the Principles of European Contract Law and the Unidroit Principles that make provisions for hardship as well as force majeure should be implemented.

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Frustration v Imprévision, Why Frustration is so ‘Frustrating’: The Lack of Flexibility in the English Doctrine’s Legal Consequence

Al Majed,

AlMajed

2023

Liverpool Law Rev

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The COVID-19 pandemic and subsequent economic restrictions have placed many contractual parties under great strain to honour their agreements as contracts have become commercially impracticable and excessively onerous. This article explores the legal position in England, France and the Middle East under the doctrine of impossibility, impracticability and unforeseen circumstances. Strongly rooted in contractual autonomy and commercial certainty, this article argues that frustration in English common law is not sufficiently broad because the consequence (automatic discharge) is too rigid and does not allow a renegotiation of obligations. French civil law is more accommodating but only formally adopted imprévision in civil law in 2016, meaning it lacks traction. However, Middle Eastern civil law countries accept the doctrine as an integral part of their law and theory of justice, allowing obligations to be rebalanced in a more flexible manner. The English legal system should consider the advantages of a similar reform.

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The doctrine of frustration under section 56 of the Indian Contract Act

Cited by 3 publications

References 2 publications

The Impact of Covid-19 on Contractual Obligations in Malaysia

The Impact of Covid-19 on Contractual Obligations in Malaysia

The Legality of Doctrine of Frustration in the Realm of Covid-19 Pandemic

Frustration v Imprévision, Why Frustration is so ‘Frustrating’: The Lack of Flexibility in the English Doctrine’s Legal Consequence

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