- An unexpected event out of contracting parties’ control
- Neither parties fault Neither contemplated the supervening event
- New circumstances would make it unjust for both parties from their original contract
Example - Taylor v Caldwell (1862)
- Taylor hired music hall for a concert but burned down before concert day (unexpected event out of contracting parties' control)
- Taylor claimed damages against owner (Caldwell)
- Court’s decision: destruction hall means contract was frustrated and therefore Taylor was able to claim for his compensation
