Disadvantages Of Frustration Law

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Issue: The issue is whether the contract between CompuMac Limited and BestCoach can be discharge due to the heavy monsoon rain in Johor Bahru where roads were flooded and no longer accessible which it is causing BestCoach to unable to perform their obligation where BestCoach has refused to proceed with the coach journey on the departure date. The issue is also whether CompuMac Limited is entitled to get back the refunds of the deposit or is required to pay the balance amount to BestCoach. Rule: Discharge a contract is to terminate a contract where obligations are longer to be fulfilled anymore. A contract can be discharged by four ways which is performance, breach, agreement or frustration (Benny S Tabalujan, 2012). Discharge by frustration takes place when a supervening event occur where none of the parties are at fault. The contract basis is being destroyed and the parties will find their committed venture is radically different from the original purpose of the contract. It is unlike the case of Davis Contractors Ltd v Fareham Urban District Council (1956) where the increase of cost is not of frustration (Benny S Tabalujan, 2012).…show more content…
2) It is frustrated when the event which form the underlying part of the contract was cancelled or postponed where none of the parties are at fault which can be seen in the case of Krell v Henry (1903). (Benny S Tabalujan,

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