Question

TermiFab is a steel fabrication business operating in Adelaide. The business is owned by Pedram. The business has a current 10-year lease of the factory where its manufacturing operations are run. Pedram has just been awarded a contract to supply steel frames that will be used in the building a commercial shopping centre in the Adelaide CBD. Under the contract, Pedram will start supplying steel frames to the shopping centre developer in 90 days. The construction period is estimated at 24 months, and Pedram is expected to supply steel frames for 16 of those months. Two months before the delivery date of the first supply of steel frames to the shopping centre developer, the South Australian Government compulsorily acquires the site of Pedram’s factory. The factory happens to be along the route of a new tunnel link system that the government will start building.

PLEASE I REQUEST YOU, DO NOT COPY PASTE

Answer 1

Yes, the contract can be eject ( discharged) by frustration.

The doctrine of frustration providing that contracting parties may reflect from their contractual commitment if after the origination of the contract, performance giving is not possible or different. The doctrine of frustration seeks in cases of variance in circumstances. however, the events give rise to the variance of circumstances must not be the mistake of either of the individual of the contracts. In this case the disturbance caused by the government to the factory of Pedtrum caused delay that give rise to hardships and trouble such that the company cannot distribute their first supply as specifies in the contract. As such pedrum may be released from their contractual commitment by the doctrine of frustration since the late is not possible to neglect.