Term
| G.H. Treitel defined Contract frustration as: |
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Definition
| Under the doctrine of frustration, a contract may be discharged if after its formation, events occur making its performance impossible or illegal |
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Term
| Historically, contractual obligations were absolute. The courts developed the doctrine of frustration in order to be fairer to parties whose failure to perform was beyond their control. See: |
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Definition
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Term
| Name the three classes of ways in which a contract might become frustrated: |
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Definition
1. Impossibility
2. Illegality
3. Change in circumstances |
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Term
Impossibility-
The subject matter of the contract is destroyed. See: |
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Definition
Taylor v Caldwell
D rented a music hall to Taylor which burned down. |
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Term
Impossibility-
The subject matter of the contract becomes unavailable. See: |
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Definition
| Jackson v Union Marine Insurance |
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Term
Impossibility-
A person required for the performance of the contract becomes unavailable through illness or other good reason. See: (3 cases) |
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Definition
Robinson v Davidson (pianist)
Condor v Barron Knights Ltd (drummer)
Morgan v Manser |
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Term
Impossibility-
There is an unavoidable, excessive delay. See: |
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Definition
| Pioneer Shipping Ltd v BTP Tioxide Ltd |
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Term
Illegality-
The cases here were during wartime when laws are subject to change (such as the requisitioning of goods) to meet the unusual circumstances. Name two cases which were frustrated due to illegality: |
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Definition
Denny Mott and Dickinson Ltd v James B Fraser and Co Ltd.
Shipton Anderson and Co v Harrison Bros and Co |
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Term
| Lord Macmillan quote about illegality from Denny Mott case: |
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Definition
| It is plain that a contract to do what it has become illegal to do, cannot be legally enforceable. |
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Term
| Change in Circumstances definition: |
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Definition
| Contracts may be frustrated where there is an event which destroys the central purpose of the contract such that all its commercial purpose is destroyed. |
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Term
Change in Circumstances-
Coronation cases. Name the two differing cases: |
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Definition
Krell v Henry-
Henry rented a room to see coronation but when it was postponed it was held Henry didnt have to pay.
Herne Bay Steamboat Co v Hutton
A boat was rented to see the kings inspection of the fleet of ships around the coronation. After the postponement the contract was not frustrated because there was still commercial value in the contract. |
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Term
Change in Circumstances-
Name the case that made allowance for frustration of leases: |
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Definition
| National Carriers Ltd v Panalpina Ltd |
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Term
Limitations on frustration-
The frustration is self-induced, including negligence. See:(2 cases) |
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Definition
J Lauritzen AS v Wijsmuller BV
Maritime National Fish Ltd v Ocean Trawlers Ltd |
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Term
| At common law, the parties are released from any contractual obligation from the time of the frustrating event, forward. However, they are still bound by any obligations that arose before the contract was frustrated. See: (2 cases, 1 statute) |
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Definition
Chandler v Webster--Coronation case where contract for room paid in advance was frustrated. Court did not allow recovery of money.
Fibrosa Spolka Akcyjna v Fairbairne Lawson Combe Barbour-- House of Lords overturned Chandler and ruled that a party could recover payments made before frustrating event.
Law Reform Frustrated Contracts Act 1943, changed the rule again... |
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Term
| The Law Reform (Frustrated Contracts) Act 1943, deals with what 3 areas? |
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Definition
1. Recovery of money paid in advance-Section 1(2)
2. Recovery of work already completed-Section 1(2)
3. Recovery for a benefit gained through partial performance-Section 1(3) |
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Term
The Law Reform (Frustrated Contracts) Act 1943-
Recovery of money paid in advance: |
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Definition
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Term
The Law Reform (Frustrated Contracts) Act 1943-
Recovery of work already completed is in section 1(2). This is discretionary and does not guarantee recovery of all expenses. See: |
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Definition
| Gamerco SA v ICM/Fair Warning Agency |
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Term
The Law Reform (Frustrated Contracts) Act 1943-
Recovery of a benefit gained through partial performance. See: (1 statute, 1 case) |
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Definition
Section 1(3)
BP Exploration Co (Libya) v Hunt (No. 2) |
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Term
Limitations on frustration-
The contract has become less beneficial or more difficult for one of the parties. See: |
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Definition
Davis Contractors Ltd. v Fareham UDC
Contracting work which should have taken 8 months, took 22 because of scarcity of work. Contract was frustrated. |
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Term
Limitations on Frustration-
The contract expressly provides that performance should occur under any circumstances. See: |
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Definition
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Term
Limitations on Frustration-
The parties were aware that the frustrating event might occur. See: |
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Definition
| Amalgamated Investment and Property Co Ltd v John Walker and Sons Ltd. |
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