Frustration of contracts, signed in compliance with law of England, as a probable consequence of EU sanctions against Russian companies

• Main Authors: Aleksandr V. Padiryakov, Roman V. Barabash
• Format: Article
• Language: English
• Published: Tatar Educational Center "TAGLIMAT" Ltd. 2017-03-01
• Series: Aktualʹnye Problemy Èkonomiki i Prava
• Subjects: Civil law
• Online Access: http://apel.ieml.ru/storage/archive_articles/9466.pdf
• ISSN: 1993-047X; 2410-0390

Objective comprehensive analysis of the doctrine of the frustration of contracts signed in compliance with law of England and the practice of its application for the Russian companies. Methods dialectical approach to cognition of social phenomena allowing to analyze them in historical development and functioning in the context of the totality of objective and subjective factors that determined the choice of the following research methods systematicstructural formallegal comparativelegal legal modeling method. Results due to the introduction of the EU sanctions there is the risk of foreign counterpartiesrsquo refusal to execute contracts with Russian companies on the legal basis of frustration of treaties. The essence of the frustration doctrine is that the contract obligations may be terminated if after their signing such events occur which make their fulfillment impossible or unlawful. When signing international agreements under English law the lawyers of Russian companies should include provisions governing the relationships of the parties in case of impossibility of the contract execution due to the occurrence of an event that caused the treaty frustration in particular the imposition of sanctions. It is recommended to specify in the contract how the losses arising from the inability to execute the contract will be distributed between the parties. Scientific novelty for the first time basing on court practice review the definition of the frustration of contracts according to the law of England is formulated the legal implications of the recognition of the contract frustrated are discussed and the legal conditions are proposed that should be provided for in the text of a contract to avoid the problem of uncertainty in the allocation of losses of the parties in case of occurrence of external events including sanctions. Practical significance the main provisions and conclusions of the article can be used in scientific and lawenforcement activity when dealing with the doctrine of the frustration of contracts in compliance with the law of England and the practice of its application in relation to Russian companies.