Does the doctrine of frustration apply when it is alleged that a change in circumstances after the formation of a contract renders it physically or commercially impossible to fulfil the contract?

Saskatchewan, Canada


The following excerpt is from Industrial Overload Ltd. v. McWatters, 1972 CanLII 745 (SK QB):

It seems to me that the doctrine of frustration is applicable and relevant when it is alleged in a case, such as the one at bar, that a change of circumstances after the formation of the contract renders it physically or commercially impossible to fulfil the contract The principle of an implied condition seems to be that, in contracts in which the performance depends on the continued existence of a given person or thing, a condition is implied that the impossibility of performance arising from the perishing of the person or thing shall excuse the performance: vide Blackburn J. in Taylor v. Caldwell (1863), 3 B. & S. 826 at 833, 122 E.R. 309.

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