The Doctrine of Frustration concerns the legal relationship that because of occurrence of some events beyond reasonable contemplation it becomes impossible to perform and therefore the parties are discharged of the performance of the contract. Section 56 of the Indian Contract Act,1872 enshrines this principle to the effect of saying that ‘every contract to do an impossible act is void’. The contract becomes frustrated when there is an event that has the affect of making the purpose of the contract impossible, unlawful or totally unexpected by both the parties to the contract.

The most famous of these are the Indian case Of Satyabrata Ghose v. Mugneeram Bangur & Co. (1954). In this case, the role of Supreme court referred to the decision making under the rule of frustration that Say the contract becomes frustrated where there is a condition that went to the root of the contract and made its performance impossible. In the case, it is shown that the building land contract was interrupted due to the governmental orders during the Second World War. That is why the Courts ruled that due to the war related restriction the parties were unable to perform their obligations under the contract and thus, the contract was frustrated.

Disaffection cannot be recorded where the issue of the challenge in performance is temporal or where the event was anticipated. It is also not allowed where the contract has provided for how particular incidences should be handled in as much as they are contingencies.