2021 01 30 Module 3

Contract law governs the termination of agreements through frustration, which occurs when performance becomes impossible, illegal, or radically different without party fault. Key legal precedents such as *Davis Contractors v Fareham* establish that frustration requires a fundamental change to the contract's foundation, while *Krell v Henry* and *Herne Bay v Hutton* illustrate the distinction between frustrated and non-frustrated purposes. Remedies for breach, primarily damages, aim to place the plaintiff in the position they would have occupied had the contract been performed, with mitigation required upon actual breach. Equitable remedies like specific performance supplement these damages when monetary compensation proves inadequate. The transition to tort law introduces the fault principle and vicarious liability, where employers bear responsibility for employee actions during the course of employment, ensuring compensation for victims when individual employees lack sufficient assets.