Damian is a cabinet maker - he owns and runs a business in Melbourne, making and selling high quality cabinets. He enters a contract with Simon, who manages a plantation two hours' drive away, for supply of timber. Damian explains that cabinets made from red oak wood are strong and durable, so his business relies on using such wood exclusively for making cabinets. Simon says that he has a small area of red oak boards in his plantation, and he can provide Damian with a steady supply of red oak boards. He agrees to deliver five boards of the red oak timber to Damian each month.

Damian agrees to pay $5,000 upon each delivery.

This arrangement goes smoothly for five months. The day before the sixth delivery is due, Simon calls to tell Damian that he can no longer supply him with red oak boards, due to an unexpected bushfire that spread and destroyed half of his plantation.

3. Simon argues that the contract has been frustrated under common law and that he no longer has any obligations to Damian. Is he correct?