- Frustration and contract — Price and damages — All risks
This chapter discusses the law on risk, mistake, and frustration. Risk and frustration may be treated in proximity since the operation of frustration is bounded by the transfer of risk. One consequence of the transfer of risk to the buyer is that the buyer may not invoke the risk event so as to seek relief from the performance of contractual obligations under the doctrine of frustration. 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. Mistake also deals with the same subject matter of material mishap to the goods. Hence, there is a tendency to apply it with the same degree of rigour as frustration as a contractual dispensing agent.