LEGS6003: ABC Pharmaceuticals (ABC) Has Had A Contract With Tulip Medical: Business Law Assignment, UOD, Ireland

ABC Pharmaceuticals (ABC) has had a contract with Tulip Medical (Tulip) for the past three years for the supply of drugs to treat arthritis. The contract term agreed between the parties was five years, but last month Tulip contacted ABC to inform them they would be canceling the contract with immediate effect, as a government order recently enacted in the country in which Tulip is located has put a ban on the importation of this drug.

ABC is considering suing Tulip for breach of contract but its solicitor has advised that it is unlikely to be successful, as the contract is frustrated.

(a) Define the concept of ‘contractual frustration’ and explain any three situations (aside from government intervention) where a court is likely to uphold a claim of frustration.

(b) State, with reasons, whether the contract between ABC and Tulip is frustrated.

Use of relevant case law is essential in answering both parts (a) and (b).

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