Self-induced frustration CASES
In English law, self-induced frustration occurs when a party’s own actions or negligence contribute to circumstances that might otherwise have frustrated a contract, preventing them from claiming frustration as a defence.
Definition and Principles
Frustration releases parties from contractual obligations due to unforeseen events making performance impossible or radically different. However, if the frustrating event is caused or significantly contributed to by one party’s actions or omissions, frustration cannot be invoked.
Legal Consequences
- Parties causing or contributing to the frustration remain bound by the contract.
- The innocent party may seek remedies such as damages for breach.
Practical Importance
Recognising self-induced frustration helps parties understand their responsibilities, emphasising the importance of due care to avoid inadvertently causing events that hinder performance.
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Charterers hired a trawler requiring a licence to operate. When only three licences were granted for their five trawlers, they chose not to license this vessel. The Privy Council held the contract was not frustrated as the appellants' own election caused the inability to perform. Facts The appellants chartered the...