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It is not uncommon foi paities to finu that fulfilment of theii contiactual obligations has
become moie buiuensome than they hau expecteu when enteiing into a sale contiact. This is
of paiticulai ielevance to those selleis who have concluueu a sale contiact on shipment
teims: tenuei of confoiming uocuments anu ueliveiy of contiactual goous may tuin out to be
unpiofitable foi these paities uue to some events aiising aftei the conclusion of the contiact.
Bowevei, coulu this oi a similai uifficulty be an excuse pei se foi theii non-compliance. Coulu
the plea that they "have useu theii best enueavouis to achieve liteial peifoimance" be a goou
uefence against buyeis.
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In geneial teims, fiustiation occuis wheie, uue to a supeivening event, the peifoimance of a
contiact has been ienueieu peimanently impossible oi iauically uiffeient fiom that which
was oiiginally piomiseu in the contiact. A fiustiating event, in essence, must occui aftei the
entiy into a contiact, anu the paity seeking to iely on it must not have any ieasonable means
to pievent it happening.
*!"# %&'#( %#()*+, -- |199uj 1 Lloyu's Rep. 1
Is it any uefence foi selleis to pleau that fulfilment of theii contiactual uuties has become
oneious.
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12*)34 56+,(*7,6(4 8,9: ): ;*(#"*< =(>*+ 234,(37, 56&+730 |19S6j A.C. 696
Boes a sale contiact fiustiate wheie the methou intenueu to be useu by selleis has been
impossible.
1!4*?3(6/06& @ 56: 8,9: ): A6>0## !"6(0 B<>C DEFGEH E 806I9J4 K#': LMF
* 8#N34 O<<*+&#0 ): %*<<&, |19S9j 2 Lloyu's Rep. 629)
1%<I," ): 83+94*I |19SSj 2 Lloyu's Rep.S78
Examples of fiustiation: A37?600 @ P+3/", ): .4",6+ O9(39/# |19u1j 2 KB 126; %673#,#
566'#(*,3)# %&344# ): 8* Q0*,* 5#(#*0 (1947) 8u Ll L. R. SSu; 1;3>(64* ): ;*3(>*3(+ |194Sj AC S2



2u1S- 2u14, Nelis 0zuel
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The immeuiate legal consequence of fiustiation can seem uiastic: opeiation of the uoctiine
"kills" the contiact anu automatically ielieves both paities of fuithei peifoimance as fiom the
time of fiustiation.
1!"# %&'#( %#()*+, -- |199uj 1 Lloyu's Rep. 1, 8
This iesult can seem even moie uiastic when consiueiing the position of buyeis who paiu the
piice oi pait of it befoie the contiact has been biought to an enu, anu of selleis who incuiieu
expenses uuiing paitial fulfilment of the contiact oi piepaiation foi contiact peifoimance.
Bowevei, the couits have poweis to allocate these costs between the paities unuei the
Fiustiateu Contiacts Act 194S.
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A piime example of fiustiation in sale contiacts is the uestiuction of specific goous, which is
spelleu out unuei section 7 of the Sale of uoous Act 1979. This section is seluom applicable to
the sale contiacts on shipment teims. Why.
R6+?0*+9 ): S*7? T*(70*I 8:2: |19S1j 2 K.B. 2S2, 2S8
.,34* %:.: ): .U,#7 .B |198Sj 2 Lloyu's Rep. S79

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Can piohibition of expoit fiustiate sale contiacts. *!(*9*V ): .+9(# |1976j 1 Lloyu's Rep. 416,
42S.
What is the situation in case of piohibition of impoit. 156+/3<#V ): !(*9*V |198Sj 1 Lloyu's
Rep. 2Su.
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Paities may be unwilling to assume the iisk of inciuents ovei which they have no contiol, anu
they may wish to keep the contiact alive iegaiuless of the occuiience of a fiustiating event. In
many commeicial contacts goveineu by English law, this lacuna is sought to be filleu by
piopeily uiafteu foice majeuie clauses.
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In bioau teims, foice majeuie clauses (a) allocate the iisk of events, anu (b) lay out eithei (i)
the scope of contiactual obligations (cl. 22 of F0SFA S4) oi (ii) the giounus of excuse foi non-

2u1S- 2u14, Nelis 0zuel
peifoimance (see cl. 19 of uAFTA 1uu foim, ICC foice majeuie clause, aiticle 79 of CISu).
Naiiowly, the issue of how they opeiate is, in effect, a mattei of contiact inteipietation.
Can opeiation of fiustiation be iuleu out completely by foice majeuie clauses. 1!"# Q0*I*
8*(/* |198Sj 1 A.C. 244) oi funuamentally uiffeient fiom that which was agieeu *!"# A#<*
|1982j A.C. 724).
It may be uifficult to shut out foice majeuie clauses even by a special piovision wheieby a
paiticulai obligation was unueitaken.
Q*/+*+ %:':.: ): !(*9*V W7#*+ !(*+4'6(,*,36+ |1987j S All E.R. S6S
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The couits tenu to ieau foice majeuie clauses naiiowly anu, in the absence of cleai woius to
that effect, foice majeuie clauses aie not geneially constiueu to compiise events which aie
within the ieasonable contiol of the paity seeking to invoke foice majeuie.
!"# %&'#( %#()*+, -- |199uj 1 Lloyu's Rep. 1
T(#<#( ): R*7?'(*+/ |1979j 1 Lloyu's Rep. 229
5"*++#0 -40*+9 ;#((3#4 ): %#*03+? =:P: |1988j 1 Lloyu's Rep. S2S)