Ten Things That Happen When You Are In Frustration Of Contract

When a contract is entered into between two parties, specific duties and rights arise between those two parties. The frustration of contract is a scenario whereby some unforeseen events happens after the contract is entered into, which make the performance of the contract impossible. Such a situation is known as the frustration of the contract. The parties need not perform the contract; thereafter, they are relieved from the entire contractual obligation that arose from such contract.

English Law on the frustration of contract

The doctrine of frustration of contract was initially developed in the English laws. The case which developed this doctrine was Taylor v. Cardwell, whereby there was an opera house which was rented to hold concerts via contract between the parties. The opera house was subsequently destroyed by fire. The court held that the contract was frustrated as the subject-matter of contract on which the entire contract was made, was destroyed by fire and in no way, the contract could be further carried on.[1]

The doctrine of Frustration of contract under the Indian Law

As a general rule, once a contract is entered into between the parties, it has to be carried on according to such agreement. But there is an exception to this rule under the Indian Contract Act, 1872 under Section 56. The section reads as follows-

“Contract to do act afterward becoming impossible or unlawful.-A contract to do an act which, after the contract is made, becomes impossible, or, because of some event which the Promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful.

Compensation for loss through non-performance of act known to be impossible or unlawful.-Where one person has promised to do something which he knew, or, with reasonable diligence, might have known, and which the promisee did not know, to be impossible or unlawful, such promisor must make compensation to such promisee for any loss which such promisee sustains through the non-performance of the promise.”[2]

Therefore, a contract to do anything which is made impossible or unlawful to execute thereafter becomes void. Compensation is also provided to the party who suffers a loss on such non- performance of the contract by the person who knew that the act was unlawful or impossible to perform.

The doctrine is based on the legal maxim “les non cogit ad impossibilia,” which means the law will not compel a man to do what he cannot possibly do. The apex court very well explained the doctrine in the case of Satyabrata Ghose v. Mugneeram, whereby, the court held that the word ‘impossibility of contract’ and ‘frustration’ could be used as a synonym. Where the contract cannot be performed because of the impossibility, then the person cannot be compelled to do that task.[3]

 Conditions necessary for Section 56

1. There should be a valid contract existing between the parties. The contract occurred between the parties should satisfy all the requirements of a valid contract set out by the Indian Contract Act, 1972.
2. The contract must be set to be performed. That means it has not been performed either wholly or has been performed only in part. Only if some part of the contract is yet to be performed, section 56 will find its applicability.
3. The contract has either becomes impossible or unlawful after that. The contract, after being entered into, should become impossible to perform or unlawful. The party should be unaware of this fact or else they will have to pay the compensation to the party suffering from such known frustration of contract.

Grounds of the frustration of contract may be the destruction of the subject –matter, non- occurrence of the contemplated events, death or incapacity, change of circumstances, government, administration or legislation intervention, the intervention of war, and such other circumstances.

Conclusion

The doctrine of frustration of contract can be very well be defined after reading Section 56 of the Indian Contract Act, 1872. It is made evident can frustration can be allowed into in two circumstances, i.e., the impossibility of performance of contract and illegality of contract. Adequate compensation is provided to the party who has in any of the circumstances of the frustration suffered loss by the party who has gained something from the frustration.

[1] Taylor v. Cardwell (1863) 3 B.& S. 826.

[2] Indian Contract Act, 1872, s. 56.

[3] Satyabrata Ghose v. Mugneeram (1954) AIR 44.

10 Facts That Nobody Told You About Type Of Privacy Torts

There are laws in each state which balances the Right to Privacy of every individual. Even if any media or newspaper seeks the privacy of anyone’s life, then they will be the charge for the invasion of privacy.

There are four types of Privacy Torts

1. Intrusion

This is the first type of Invasion of Privacy. This occurs when someone enters or spreads into another person’s private life. This includes a person recording the private conversation of another person’s that too without his/her knowledge, trespassing to another person’s property and taking photographs without his/her consent, and this counts as violating someone’s Right to Solitude. Even, news sources like Media have to be careful about the privacy of another person. If they intrude to the private life of public figures then they will be sued for invasion of privacy.

Read Also – New laws in India

2. Public Disclosure

It is the second type of Private Torts. This occurs when a person publishes embarrassing, hurtful, and offensive facts about another person’s life. If the media brings the private facts of the high-profile person to know of the public, then that person may sue them for the invasion of privacy. The media source may find guilty by the Court for Invasion of Privacy depending upon how they (Media) have obtained the information.

3. False Light

It is the third type of Private Torts. This occurs when a person produces the false statement or depicts the things in a false manner about another person. For Example, A writer distorts, embellishes or fictionalizes a story; he can characterize some random person in a way that perverts the truth. Defamation and false light publication are two completely different things. A person can fictionalize some random person or a known person in a story but without any malicious intention.

See more: Right to privacy

4. Appropriation

It is the fourth and last type of Private Torts. This occurs when someone uses the person’s image or name for the unauthorized commercial use that too without his/her consent, knowledge, and approval. For Example, A company cannot use the name or image of the celebrity for endorsement of a product without his/her consent. Photographs and images used in a news channel or newspaper, images and pictures of any incidental references used in the books and films, the Court will not consider them an appropriation. But if the media is using a person’s name, even only the part of his name without his/her approval and consent, then he/she may sue the media for invasion of privacy.