The Effects of Non-Performance of Contract as a Result of Frustration of Purpose

  •  Mohammad Reza Maleki    
  •  Ali Mohammadzadeh    


Appearing of forcible events or other reasons which hinder the performance of contract or cause its frustration has special legal effects and destroy the casual link between the obligator and the loss resulting from its non-performance. In this situation, these reasons affect the structure of contract and possibly may cause the discharge or suspension of contract. Therefore, the effect of occurring this kind of excuse are twofold. One of the important consequences of occurring this event is the exemption of the obligator from contractual responsibility, because, the non-performance is not attributed to him. The other effect is that force majeure changes the structure of the contract. A contract that encounters to force majeure may be discharged forcibly or willingly or its performance suspended. Our purpose in this article is to review these effects.

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