Discharge By Frustration Flashcards
The old strict rule for frustration
A party was bound to perform their contractual obligations even if an intervening event made it impossible
Case for old strict rule of frustration
Paradine v Jane
Current law for frustration
Frustration occurs even if there is an unforeseeable intervening event which means the contract can no longer be performed
Once frustrated, contract ends
Neither party has to fulfil their contractual duty and neither party can sue for breach of contract
Force majeure clause
Excluded liability for non performance if there is an extraordinary event
No remedy will be available in this instance
Types of frustrated contracts
Impossible to complete
Illegal to complete
Radical change
Impossible to complete
Contracts can be impossible to complete if-
•Subject matter if destroyed
•Subject matter if unavailable
•If the person is unavailable
Case for subject matter destroyed
Taylor v Caldwell
Case for subject matter unavailable
Jackson v Union Marine Insurance
Case for person unavailable
Condor v The Baron Knights
Illegal to perform
Changes in the law which make the contract illegal to perform
Case for illegal to perform
Denny, Mott & Dickson Ltd v James & co Ltd
Radical change in circumstances
Main purpose of contact is based on a particular event which cannot take place the contract is frustrated
Case for radical change
Krell v Henry
When frustration cannot apply
•Self induced
•Contract just less profitable/more difficult
•Event was foreseeable or mentioned in the contract
Self induced
Frustration doesn’t apply if the event is within the control of the party
