Kawasaki, a shipowner, and Kim Young, a merchant, entered into a contract for the hire of one of the former's ships and the delivery of the latter's goods. Under the contract, Kim Young was supposed to load spices and tobacco in a port in Nagasaki, Japan. But before the contract could be performed, war broke out between Japan and Korea. This meant that if Kim Young, who was Korean, were to trade with Kawasaki, who was Japanese, he would be doing business with an enemy country, which would land him in jail.

Advise the parties as to their contractual position. Focus your answer on the principles and effect of frustration of contracts.