FRUSTRATION OF CONTRACTS IN INDIA: DOCTRINAL AND JUDICIAL PERSPECTIVES

Frustration is an important concept in the Contract Law. It deals with the situation where the events which were unforeseen at the time of entering into a contract occur. The circumstances that are not expected to occur result in such a situation where it becomes impossible for a party to perform their part of the contract or such performance becomes unlawful. It thus forms an exception to the rule of pacta sunt servanda according to which contracts must be performed in their entirety. The said concept has been dealt with extensively in the Indian Contract Act, 1872 by Section. This paper attempts to discuss the historical background of the said doctrine; the statutory provisions dealing with it; and the decisions of the Courts in India on the said matter. It also seeks to discuss the extent of application of the said provision; its limitations; and the relevance of the said provision in a modern scenario.