Root cause of the problem:
Some events like Economic impossibility and Economic impracticality causes the court to discharge a contract under frustration. This phenomenon is called the doctrine of frustration and it is rarely considered by the court when there is a performance failure.
Let’s briefly analyze the reason for economic frustration from the perspective of US and English law. The research will be done within common and civil law jurisdictions that suffer from problems like economic impracticality and impossibility.
History Check:
The Law reform is the common Law brought into light in the year 1943, which has all frustration contracts. This Act and its details will be analyzed along with the kind of hardships under which this contract is considered. The Law reform Act highlights major doctrine force for impracticality under US Law. Also, Uniform Commercial Code, under Article 2-615, will be studied briefly.
Justifying the problem:
An insight will be provided on the differences between impossibility and impracticality in economic frustrating under contract dealt by English and US Law jurisdiction. This insight will help the court to easily decide at the event of economic analysis of impracticality and impossibility at the bottom line reasons for frustration. The research helps at time of economic losses because of contract and do not make it look like an excuse to escape the performance.
Hypothetical Framework:
The reason of logical basis given for doctrine is, to provide practical cogitation in commercial sense. This is an impracticable defence, provided by disputed party, by taking surrounding circumstances into consideration.
Thus, the term impracticality is brought into light, to cover up the scenarios like increased difficulty and severe, expensive, loss to part and injury. Impracticality approach is high when compared to Impossibility approach in both US and English court of Law. US courts have stipulated the rejecting economic frustration based on impracticality, which means the courts in US providing decisions under economic imbalance.
If the contract is difficult to perform because of economic impracticality and economic impossibility, the court will declare the verdict as damages in lieu, as this is the reasoning of the contract.
