Discharge of Contract on the Grounds of Frustration Coursework

Discharge of Contract on the Grounds of Frustration - Coursework Example Jardinia Limited has signed two contracts with Southern Belles which entails the installation and fitting of an industrial size system for the poly-tunnels and green house. Payment for installation will be due on completion of the work. The other contract states that 100 units are to be provided for resale to the general public at a cost of ?250 each to Southern Belles Ltd. A ?5,000 deposit had already been paid. However, a day before completion of the work, a storm destroyed all the installations completely. Southern Belles Limited is therefore claiming that both contracts are discharged on the grounds of frustration with no money to be paid on the fitting contract and the deposit refunded. Force Majeure Clause If either Jardinia Limited or Southern Belles Limited is prevented or stopped from carrying out its duties as it had been agreed upon in the contract (other than their duties to make their payments) by a force majeure event then: The affected party will be relieved from perfo rming its duties as long as the force majeure event continues to pose as an inhibiting factor further affecting in completion of the project. ... e Event, how it has affected its ability to carry out its obligations as it had been agreed upon in the contract and the measures that have been developed by the party to prevent such a Force Majeure Event from occurring and destroying property. The affected party has to establish mitigation measures to eliminate effects of the Force Majeure Event that may prevent it from fulfilling its obligations as stated in the contract. After cessation of the Force Majeure Event, the affected party should provide a written notification to the other party informing it of the cessation of the Force Majeure Event. The party should then continue with performance of its duties as the two parties had agreed on. Southern Belles Limited will give the agreed amount of money to Jardinia Limited for installation of an industrial size system for a green house and poly-tunnels as soon as sales are attained. Southern Belles Limited will use all reasonable efforts to ensure it attains production capabilities. A Force Majeure Event is therefore described as any event that occurs without any knowledge of a party and it is beyond an individual’s reasonable control. The event is unavoidable and does not withstand the reasonable care of a party. A Force Majeure Event at Jardinia Limited will not constitute a Force Majeure Event, unless most of its operations are entirely affected. Force Majeure Clause denotes that the storm triggered the operation of this clause as the contractor could not avoid occurrence of the storm and could still not provide against it. The storm qualifies as a Force Majeure Event since it totally destroyed work that had been done and has as well prevented it from going on as planned. The storm has had severe impacts on the contract as additional costs, time as well as inputs