Party A signed an agreement to use a theatre by Party B. Just before the first performance, Party A received a call party B who told that the theatre had burnt down and would need to be completely reconstructed and that reconstruction was not likely to go ahead for some time.

Party A then finds other places, have financial impact when doing with other parties.

Party A also recently received a phone call from Party B who informed that Party A was required to pay the agreed amount in the contract for the use of the theatre as Party A had signed the contract and the fire was an accident. Party A and Party B agree that neither Party A nor Party B could ever have expected the theatre to burn down and that neither party to the contract assumed the risk for such an event. Can Party A and B both walk away from the contract? Explain to Party A the likely common law principle which Party A may be able to rely on and apply it to the facts (Frustration?)