Can a contract be frustrated when an employee suffers a permanent disability preventing him from working?
Newfoundland and Labrador, Canada
The following excerpt is from Mandavia v. Central West Health Care Institutions Board, 2005 NLCA 12 (CanLII):
The parties agree that at common law a contract could be frustrated when an employee suffered a permanent injury preventing him from working (Dartmouth Ferry Commission v. Marks (1903), 1904 CanLII 61 (SCC), 34 S.C.R. 366). In such an event both the employer and the employee would be relieved from performance of the contract. However, proof of a permanent disability does not necessarily result in a finding that a contract is frustrated.
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