Business Law

Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

1
BUSINESS LAW
Table of Contents
Question 1........................................................................................................................................2
Issue.............................................................................................................................................2
Law..............................................................................................................................................2
Application..................................................................................................................................3
Conclusion...................................................................................................................................4
Question 2........................................................................................................................................5
Issue.............................................................................................................................................5
Law..............................................................................................................................................5
Application..................................................................................................................................6
Conclusion...................................................................................................................................7
References........................................................................................................................................8

2
BUSINESS LAW
Question 1
Issue
The issue is to determine whether Kent Institute Australia (KIA) could terminate the
contract of employment of Professor Chris Berlin.
Law
Frustration of Contract is one of the vitiating factor that leads to the exhaustion of a
contract for the performance of the contract goes beyond the control of the parties to the contract
(Fried 2015). Uncertain events or negative incidents that are not within the capacity of the parties
to prevent would lead to the termination or exhaustion of the contract (Lawhandbook.sa.gov.au
2019). However, it occurs under limited situations when it becomes impossible to ascertain the
uncertainty of the agreement by the parties that leads to termination of a contract. The parties to a
contract that has been discharge of frustration cannot be liable responsible for such discharge as
the cause of such discharge could not be foreseen by either of the parties. Neither of the parties
should be held responsible for the discharge or termination of the contract due to frustration as it
was beyond their capacity to prevent it from happening. Although it is evident from landmark
cases that the courts have not been considerate towards the party who was liable for the
exhaustion due to frustration of the terms of the contract. The court, would however, consider the
fact that the party responsible for such discharge had no scope to foresee or anticipate the
uncertain event that would result in the discharge of the contract by way of frustration (Stone and
Devenney 2017).