Changed Circumstances

Question 1

3 defences to changed circumstances

Answer 1

1. Impossibility
2. Impracticality
3. Frustration of purpose

Question 1

what are changed circumstances?

Answer 1

after contract formation

Have no legal circumstances,

Performance is impossible now or far too expensive or difficult to be practical or does not achieve its intended purpose

Question 2

changed circumstances elements

Answer 2

• after contract formation
• a supervening event occurs without the fault of the party wanting the relief
• supervening event makes parts performance
• the contract was built on an assumption that the event would not happen
• if party does not have to deal with risk of event happening
• not obligated to fulfill duties under contract unless specific event occurs

ezz–>
After a contract is made, if something unexpected happens that’s not anyone’s fault and it makes one party’s job much harder, and the contract was based on the idea that this wouldn’t happen, then that party doesn’t have to do their part unless that specific unexpected thing actually happens.

Question 3

supervening event elements

Answer 3

• party that wants to uphold the changed circumstance defense, it can not be the reason for the event they are claiming as change
• the event must happen between the time the contract is formed, and deadline of performance

Question 4

elements of basic assumption

Answer 4

if someone’ wants to get out of a contract because things changed,

they can not use something they knew about or should have known from the start.

the change should be a big deal, something that mattered when they agreed to contract

• if they knew this change would happen, they might have made diff choices

Question 5

bearing the risk

Answer 5

Contract

Party knew or should have known of risk that event might occur but did nothing to protect against it

Court thinks it is fair to assign the risk to that party

Question 6

remedies to changed circumstances

Answer 6

If a party proves changed circumstances affected their ability to fulfill contract
Then they DO NOT have to do what the contract originally required

However, is one or both parties provided some benefits to the other, there might be a need for repayment or compensation

Question 7

impossibility

Answer 7

Must be objectively impossible

The event that they are saying is impossible to perform in a contract must be physically i,possible for anyone to fulfill the agreement

It is not enough that a specific party finds it difficult
Examples, (destruction of something essential or death of person crucial to contract)

Question 8

impracticality

Answer 8

The party using it as an excuse must have made it extremely and unreasonable hard, expensive, or risky for them to fulfill the contract

Must be beyond what is considered normal or reasonable effort to overcome

Question 9

frustration of purpose

Answer 9

contract becomes pointless

If something happens that makes the main point of the contract pointless, even if they could still technically do what’s asked, they might not have to. If knowing this change would have made them not want the contract or want it to be different, then they might not have to stick to it.