Common use of Frustration of Contract Clause in Contracts

Frustration of Contract. 69.1 In the event of frustration of the Contract because of supervening impossibility in items of Section 56 of the Indian Contract Act, parties shall be absolved of their responsibility to perform the balance portion of the Contract, subject to provisions contained in sub-clause 69.3 below. 69.2 In the event of non-availability or suspension of funds for any reasons whatsoever (except for reason of willful or flagrant breach by the Employer and/or Contractor) then the Works under the Contract shall be suspended. Furthermore, if the Employer is unable to make satisfactory alternative arrangements for financing to the Contractor in accordance with the terms of the Contract within three months of the event, the parties hereto shall be relieved from carrying out further obligations under the Contract treating it as frustration of the Contract. 69.3 In the event referred to in sub-clauses 69.1 & 69.2 above, the parties shall mutually discuss to arrive at reasonable settlement on all issues including amounts due to either party for the work already done on "Quantum merit" basis which shall be determined by mutual agreement between the parties.