The doctrine of frustration is one of the simplest concepts in the law of contract. But like any simple concept, its application is not as simple as it is understood. In Ghana the doctrine involves a mixture of common law rules and statute (ie the Contracts Act, 1960 (Act 25)).
Furthermore for a defence of frustration to lie, it must be expressly pleaded and with particularity. As was said by Edmund Davies L.J. in Mount v. Oldham Corporation [1973] 1 All E.R. 26 at pp. 29-30, C.A.: “In my view, on the exiguous evidence presented, no proper foundation was laid for a finding that frustration of the contract had been established by the defendants, on whom lay the burden.”
The argument of frustration lies very ill in the mouth of the appellant. If there was frustration it was self-induced and cannot avail the defendant. See Maritime National Fish, Ltd. v. Ocean Trawlers Ltd. [1935] A.C. 524 at p. 530, P.C. where it was held that “the essence of `frustration’ is that it should not be due to the act or election of the party.”
The doctrine of frustration of contracts will operate to discharge performance of such contracts “if after its formation events occur making its performance impossible, illegal or radically different from that which was contemplated at the time it was entered into.