This article throws light upon the significance and implications of frustration of contract. It is an automatic involuntary extinction of the contract relieving both parties of their liabilities form the point of time of occurrence of that event. It also covers the conditions which are required for proving whether the contract is frustrated or not. It also covers the specific grounds for frustration of contract such as destruction of subject matter, change of circumstances, non occurrence of contemplated events, death or inability of parties, government intervention etc. Then it throws light upon various types of impossibility of contract including initial impossibility, supervening impossibility and subsequent impossibility. It also covers the measures which can be taken to avoid making any contract frustrated. A frustrated contract is valid until the time of the supervening event but is automatically ended thereafter, whereas a contract void on the grounds of mistake is a complete nullity form the beginning.

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