TermiFab is a steel fabrication business operating in Adelaide. The business is owned by

Pedram. The business has a current 10-year lease of the factory where its manufacturing

operations are run. Pedram has just been awarded a contract to supply steel frames that

will be used in the building a commercial shopping centre in the Adelaide CBD. Under the

contract, Pedram will start supplying steel frames to the shoppingcentre developer in 90

days. The construction period is estimated at 24 months, and Pedram is expected to supply

steel frames for 16 of those months.

Two months before the delivery date of the first supply of steel frames to the shopping

centre developer, the South Australian Government compulsorily acquires the site of

Pedram's factory. The factory happens to be along the route of a new tunnel link system

that the government will start building.

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Pedram's lessor advises him that he has to leave the premises within four months as

provided by the lease contract. Pedram now has a massive problem: he must find new

premises for his factory, and it might be another two to four months to establish the factory

before it can start making steel frames. It is now clear that he cannot deliver the first supply

of steel frames to the developer in time.

Pedram comes to you for advice. You are expected to advise on whether his contract to

supply the steel frames with the shopping centre developer can be discharged by

frustration. You must cite relevant provisions of law and cases in support of your answer.