Why did the court find that the contract was frustrated in the case of: Codelfa Construction Pty Ltd v State Rail Authority (NSW)(1982)149 CLR 337?
A)Due to the declaration of war and the consequent impossibility of performing the contract.
B)Due to the non-occurrence of an event essential to achieve the substantial purpose of the contract.
C)Due to the fundamental and radical change in the circumstances of the contract.
D)Due to the complete destruction of the subject matter of the contract.

Question

Quizplus · Accepted Answer

The court found that the contract was frustrated due to a fundamental and radical change in the circumstances of the contract. This was because the State Rail Authority (NSW) had issued a notice indicating that they would not proceed with the contract due to a change in their priorities and it would be impossible to achieve the substantial purpose of the contract. This falls under the category of frustration known as "commercial frustration".

Why Did the Court Find That the Contract Was Frustrated