A contract is frustrated and is treated as terminated where an event occurs subsequent to the

formation of the contract which renders performance of the obligations impossible or illegal.
Thus for example if an act was lawful and a contract is made which involves the performance of
that act, but a statue is passed making the act unlawful, before the contract is performed the
contract is frustrated.

A party cannot rely on frustration induced by him, the events causing the frustration must arise
from external circumstances over which he has no control. Death, insanity and incapacitating
illness of a party usually causes contracts which require the personal performance of the dead,
insane or ill party to be frustrated.

Types of remedies available in Claims based on Contract

A party to a contract may be agreed for several reasons e.g. Because of the presence of a sector
or breach of the agreement by the other party. An aggrieved party may take his matter to the
court and have the court adjudicate on what his rights are, except if the contract excludes the
party from going to court. Only persons who are actual parties to a contract are entitled to sue on
the basis of a contract. Not even the 3rd parties who receive material benefits under the contract
are entitled to sue generally.
The court is guided by several principles of CL (Common Law) and equity depending on the
circumstances may grant one or more of the following circumstances.
1. Damages
2. Order for the payment of an agreed sum
3. Rescission

4. Specific performance
5. Severance
6. Payment on a quantum, mericut basis

1. Damages are monetary compensation, assessed by the court for the losses suffered by a
party as a result of a wrong done by another party to a contract.
2. This is a remedy in which the court orders the guilty party to pay to the innocent party a
sum which he agreed to pay under the agreement but has failed to pay. This is
distinguishable from damages on the basis that damages is a sum assessed by the courts
while on order for the payment of an agreed sum is for the payment of the exact amount
that the party had agreed to pay.
3. This is the setting aside of the contract
4. S.P The court, by granting this remedy orders the guilty party to perform his obligations
under the agreement as identified in the court order.
5. The court may saver or remove terms from a contract if the severance does not render the
remaking part of the contract. This remedy is most applicable to situations where a term
is found to be illegal.
6. Where there is no formal contract between parties, or where there were no agreement on
payment work to be done under this contract the court may make an order for the party
who provided goods or render services to another to be reasonably remunerated by
reference to the value of the goods or services rendered.

7. This is an order of the court which imposes an obligation on a party to either cease or not
to commence an act or conduct or imposes an obligation to perform certain tasks.