Reference no: EM133556349

Question

IRAC Question on Discharge of Contract - Frustration of Contract. Mandalay Constructions Ltd has entered into a contract with the NSW State Rail Authority to build three railway stations along a new railroad line. The agreement provides that Mandalay must complete the work in 100 weeks. The common assumption held by both parties to the contract is that Mandalay will be able to work three eight-hour shifts per day, seven days a week. Three weeks after construction begins, Mandalay is prevented, by way of an injunction, from working between 10pm and 6am Monday to Saturdays and not at all on Sundays. Mandalay is no longer able to meet the 100-week deadline for completion. Using the IRAC method, advise Mandalay Constructions whether it would likely succeed in an argument that the contract has been frustrated and if successful, would either party be able to recover any monies paid before frustration?