What is the test for determining whether performance in the present circumstances would render the contract radically different from that which was agreed in the circumstances of August 25?

British Columbia, Canada


The following excerpt is from Bank of Montreal v. On-Stream Natural Gas Ltd. Partnership, 1995 CanLII 1882 (BC SC):

26 The three-fold test for determining whether performance in the present circumstances would render the contract radically different from that which was agreed in the circumstances of August 25, is well-settled: 1.What was the foundation of the contract? 2.Was the performance of the contract prevented? 3.Was the event which prevented the performance of the contract of such a character that it cannot reasonably be said to have been in the contemplation of the parties as at the date of the contract? (Krell v. Henry, [1903] 2 K.B. 740)

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