The Path to a Greener Future: Understanding Sustainable Development In an era where environmental challenges and resource depletion are becoming increasingly evident, the concept of sustainable development has gained significant importance. Sustainable development aims to meet the needs of the present without compromising the ability of future generations to meet their own needs. This blog post will explore the principles, goals, and strategies of sustainable development, highlighting its critical role in ensuring a balanced and healthy future for our planet. "Transforming our world: The path to sustainable development." What is Sustainable Development? Sustainable development is a holistic approach that integrates economic growth, environmental protection, and social equity. It seeks to create a harmonious relationship between human activities and the natural world, ensuring that resources are used efficiently and responsibly. Definition: The most widely recognized de...
Introduction: The doctrine of frustration known to English law has been recognized under the Indian law in Section 56 of the contract act. Frustration means the discharge of a contract rendered impossible of performance by external causes beyond the contemplation of parties.
In order that the doctrine of frustration as embodied in Section 56 of the Contract Act may apply, the following three conditions must be satisfied:
i) The act should have become impossible.
ii) The impossibility should be by reason of some event which the promisor could not prevent,
iii) The impossibility should not be self-induced by the promisor.
A contract may be valid at the time it was entered into, but subsequently there may arise an impossibility which may prevent its performance. The result is that the contracts become void and the parties to it are discharged from their obligations.
For example: ‘A’ and ‘B’ contract to marry each other. Before the time fixed for the marriage, ‘A’ goes mad. The contract becomes void.
A contract may become impossible of performance after the date of contract by:
1. Destruction of the subject matter: Where the subject matter of a contract is destroyed, without the fault of parties to the contract, the contract is discharged.
For example: A person contracted to deliver 200 tons of potatoes from a particular field. The potatoes were destroyed by a pest although no fault of the party. The contract was held to be discharged.
2. Death of personal incapacity: A promise may become physically incapable of performance by reason of the death or incapacity of some person whose continued life and health are necessary for the performance of the contract.
For example: An artist undertook to sing at a theatre on a particular day. But the artists being too ill could not sing on the day fixed for performance. It was liable to pay damages.
3. Change of law: A contract which is lawful when made but becomes unlawful later by reason of a change in law, become impossible to perform.
For example: There was a contract to supply oil seeds. But the govt. rendered the sale and purchase of oil – seed illegal under the Defense of Indian Rules. Both parties were discharged from the performance of such contract.
4. Non – existence or non – occurring of a particular state of things: Where a state of things which was the basis of the contract ceases to exist, the contract is discharged.
For example: ‘A’ & ‘B’ contract to marry each other. Before the time fixed for the marriage, ‘A’ goes mad. The contract becomes void.
5. Declaration of war: A contract entered into before the commencement of war remains suspended during the war.
For example: A merchant of London had agreed to deliver sugar f.o.b. Hamburg. War broke out between England and Germany. It was held that the contract was dissolved by the outbreak of war.
EXCEPTIONS:
Some of the circumstances in which a contract is NOT discharged on the ground of supervening impossibility are as follows:
1. The difficulty of performance: A contract is not discharged by reason of the fact that the performance is more difficult, more expensive or more burdensome or less profitable to then the parties anticipated.
For example: ‘D’ agreed to supply coal within a certain time. Due to government restrictions on the transport of coal from collieries there was a failure of delivery in time. But since coal was available in the open market from where ‘D’ could have obtained it, it was not a case of impossibility of performance.
2. Commercial impossibility: The impossibility contemplated in section 56 is a physical and legal impossibility and not a commercial impossibility. The mere fact that the cost has arisen or the expectation of a higher profit is not realized is not an excuse for the non – performance of the contract.
For example: There was an agreement between ‘D’ and ‘P’ to repair certain machinery. ‘D’ failed to repair the machinery due to the strike of the workmen. It was held that a strike of workmen is not a sufficient reason to excuse performance.
3. Impossibility due to failure of a third person on whose work the promisor relied: The doctrine of supervening impossibility does not cover cases where the contract could not be performed because of the default of the third person on whose work the promisor relied.
For example: ‘D’ agreed to sell goods to ‘P’ as and when he got the same from the mills with whom he had placed orders. The mills failed to supply. There is no impossibility of performance.
4. Self – induced impossibility: When the impossibility is due to the default of the contracting party himself, section 56 would not apply. A contract will not be frustrated if it is caused by the act or omission of one party.
For example: A contract cannot be discharged if the promisor is convicted for a crime.
5. Failure of one of the object/third party: When a contract is entered into for several objects, failure of one of the object does not terminate the contract.
For example, A wholesaler entered into a contract with ‘B’ for the sale of a certain type of cloth to be produced by ‘C’. ‘C’ did not manufacture that cloth. The wholesaler claimed that the contract was frustrated due to failure of the third person i.e. ‘C’. It was held that the wholesaler was liable to ‘B’.
6. Strikes, lockout and civil disturbances: These events do not discharge a party from performing his part of the contract unless there is a clause in the contract providing that in such cases the contract is not to be performed or that the time of performance is to be extended.
For example: ‘X’ agreed to supply certain goods to ‘Y’. the goods were to be procured from Algeria owning to riots and civil could not be brought. It was held that this was no excuse for the non – performance of the contract.
In order that the doctrine of frustration as embodied in Section 56 of the Contract Act may apply, the following three conditions must be satisfied:
i) The act should have become impossible.
ii) The impossibility should be by reason of some event which the promisor could not prevent,
iii) The impossibility should not be self-induced by the promisor.
A contract may be valid at the time it was entered into, but subsequently there may arise an impossibility which may prevent its performance. The result is that the contracts become void and the parties to it are discharged from their obligations.
For example: ‘A’ and ‘B’ contract to marry each other. Before the time fixed for the marriage, ‘A’ goes mad. The contract becomes void.
A contract may become impossible of performance after the date of contract by:
1. Destruction of the subject matter: Where the subject matter of a contract is destroyed, without the fault of parties to the contract, the contract is discharged.
For example: A person contracted to deliver 200 tons of potatoes from a particular field. The potatoes were destroyed by a pest although no fault of the party. The contract was held to be discharged.
2. Death of personal incapacity: A promise may become physically incapable of performance by reason of the death or incapacity of some person whose continued life and health are necessary for the performance of the contract.
For example: An artist undertook to sing at a theatre on a particular day. But the artists being too ill could not sing on the day fixed for performance. It was liable to pay damages.
3. Change of law: A contract which is lawful when made but becomes unlawful later by reason of a change in law, become impossible to perform.
For example: There was a contract to supply oil seeds. But the govt. rendered the sale and purchase of oil – seed illegal under the Defense of Indian Rules. Both parties were discharged from the performance of such contract.
4. Non – existence or non – occurring of a particular state of things: Where a state of things which was the basis of the contract ceases to exist, the contract is discharged.
For example: ‘A’ & ‘B’ contract to marry each other. Before the time fixed for the marriage, ‘A’ goes mad. The contract becomes void.
5. Declaration of war: A contract entered into before the commencement of war remains suspended during the war.
For example: A merchant of London had agreed to deliver sugar f.o.b. Hamburg. War broke out between England and Germany. It was held that the contract was dissolved by the outbreak of war.
EXCEPTIONS:
Some of the circumstances in which a contract is NOT discharged on the ground of supervening impossibility are as follows:
1. The difficulty of performance: A contract is not discharged by reason of the fact that the performance is more difficult, more expensive or more burdensome or less profitable to then the parties anticipated.
For example: ‘D’ agreed to supply coal within a certain time. Due to government restrictions on the transport of coal from collieries there was a failure of delivery in time. But since coal was available in the open market from where ‘D’ could have obtained it, it was not a case of impossibility of performance.
2. Commercial impossibility: The impossibility contemplated in section 56 is a physical and legal impossibility and not a commercial impossibility. The mere fact that the cost has arisen or the expectation of a higher profit is not realized is not an excuse for the non – performance of the contract.
For example: There was an agreement between ‘D’ and ‘P’ to repair certain machinery. ‘D’ failed to repair the machinery due to the strike of the workmen. It was held that a strike of workmen is not a sufficient reason to excuse performance.
3. Impossibility due to failure of a third person on whose work the promisor relied: The doctrine of supervening impossibility does not cover cases where the contract could not be performed because of the default of the third person on whose work the promisor relied.
For example: ‘D’ agreed to sell goods to ‘P’ as and when he got the same from the mills with whom he had placed orders. The mills failed to supply. There is no impossibility of performance.
4. Self – induced impossibility: When the impossibility is due to the default of the contracting party himself, section 56 would not apply. A contract will not be frustrated if it is caused by the act or omission of one party.
For example: A contract cannot be discharged if the promisor is convicted for a crime.
5. Failure of one of the object/third party: When a contract is entered into for several objects, failure of one of the object does not terminate the contract.
For example, A wholesaler entered into a contract with ‘B’ for the sale of a certain type of cloth to be produced by ‘C’. ‘C’ did not manufacture that cloth. The wholesaler claimed that the contract was frustrated due to failure of the third person i.e. ‘C’. It was held that the wholesaler was liable to ‘B’.
6. Strikes, lockout and civil disturbances: These events do not discharge a party from performing his part of the contract unless there is a clause in the contract providing that in such cases the contract is not to be performed or that the time of performance is to be extended.
For example: ‘X’ agreed to supply certain goods to ‘Y’. the goods were to be procured from Algeria owning to riots and civil could not be brought. It was held that this was no excuse for the non – performance of the contract.
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