Risk, Mistake, and Frustration

Abstract This chapter deals principally with risk and frustration, with a lesser treatment being given to mistake. Risk, normally associated with possession of the goods, is concerned primarily with post-contractual events affecting the condition and existence of the goods. It usually arises when the goods are in the hands of a third party. Whether the buyer still has to pay depends upon whether risk has been transferred to the buyer. Frustration rarely affects sale of goods contracts and, if the goods are damaged, destroyed, or lost, may not be claimed by the buyer on risk. The discussion of frustration concludes with a mention of force majeure clauses. Mistake as it is considered in this chapter concerns only the existence and quality of the goods.