- Subject(s):
- All risks — Frustration and contract — Performance of contract — Breach of contract — Bulk goods
4.01 Risk and frustration may conveniently be treated in proximity since the operation of frustration is bounded by the transfer of risk. Risk is associated with the price: it determines when the buyer must pay for goods accidentally damaged, lost, or destroyed. Where a contract is frustrated, it is automatically discharged. 1 The primary effect of this is to excuse the party, usually the seller, whose performance is affected by the frustrating event from liability for breach of contract. The buyer would, even without the dissolving effect of frustration on the...
