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CHAPTER 9 Frustration

Laytime and Demurrage

Page 573




9.1 Frustration is the discharge of a contract rendered impossible1 of performance by external causes beyond the contemplation of the parties. For example, a contract postponed by Government order would be discharged from its further performance if the interference was so gross when the time did arrive to resume work, the parties would find themselves in completely different circumstances2 Money paid under a contract which is later frustrated may be recoverable as in quasi-contract.3 The key phrase in the above is “impossible of performance”. It must not just be more difficult or expensive. It must amount to completely different circumstances.

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