Discharge By Frustration Flashcards
If a party was prevented from fulfilling their part of the contract because of an unforeseeable, intervening event, they would not be liable for a breach of contract
Discharge by frustration
Discharge by frustration
If a party was prevented from fulfilling their part of the contract because of an unforeseeable, intervening event, they would not be liable for a breach of contract
What are the grounds for claiming frustration?
- impossibility
- illegality
- radical change in circumstances
Impossibility cases
- Taylor v Caldwell
- Jackson 1874
- Robinson v Davidson
- Taylor v Caldwell 1863
- Jackson 1874
- Robinson v Davidson 1871
Impossibility cases
Taylor v Caldwell 1863
the subject matter is destroyed
the subject matter is destroyed
Taylor v Caldwell 1863
the subject matter becomes unavailable
Jackson 1874
Jackson 1874
the subject matter becomes unavailable
Robinson v Davidson 1871
A party is unavailable to perform the service because of illness
A party is unavailable to perform the service because of illness
Robinson v Davidson 1871
Illegality case
Denny, Mott and Dickson 1944
Denny, Mott and Dickson 1944
Illegality case
A change in the law that makes the contract illegal to perform
Denny, Mott and Dickson 1944
Denny, Mott and Dickson 1944
A change in the law that makes the contract illegal to perform
- Krell v Henry 1903
- Hutton 1903
Radical change in circumstances cases
Radical change in circumstances cases
- Krell v Henry 1903
- Hutton 1903
The commercial purpose (main purpose) is destroyed
Krell v Henry 1903
Krell v Henry 1903
The commercial purpose (main purpose) is destroyed
Hutton 1903
If the commercial purpose is not destroyed, the contract is not frustrated
If the commercial purpose is not destroyed, the contract is not frustrated
Hutton 1903
The contract will not be frustrated if…
- one party induces the frustrating event (it would be a breach)
- if the event was or should have been foreseen
- If the contract has become less profitable
If one party induces the frustrating event, the contract is what?
breached
Maritime National Fish 1935
The contract will not be frustrated if one party induces the frustrating event
The contract will not be frustrated if one party induces the frustrating event
Maritime National Fish 1935
force majeure clause
excludes liability for delay in performance or the non-performance if there are extraordinary events
excludes liability for delay in performance or the non-performance if there are extraordinary events
force majeure clause
Depending on the circumstances, it is still possible to rely on frustration in the absence of what clause?
force majeure clause
Armchair Answercall v People in Mind 2016
The contract is not frustrated if the event was or should have been foreseen
The contract is not frustrated if the event was or should have been foreseen
Armchair Answercall v People in Mind 2016
The contract will not be frustrated if the contract has become less profitable
Davis Contractors 1956
Davis Contractors 1956
The contract will not be frustrated if the contract has become less profitable
S.1(2) of The Law Reform (Frustrated Contracts) Act 1943
- Any money already paid before the frustrating event is recoverable
- Any money payable before the frustrating event is no longer owed
- Any money already paid before the frustrating event is recoverable
- Any money payable before the frustrating event is no longer owed
S.1(2) of The Law Reform (Frustrated Contracts) Act 1943
If any valuable benefit has been obtained, payment may be ordered by the court
S.1(3) of The Law Reform (Frustrated Contracts) Act 1943
S.1(3) of The Law Reform (Frustrated Contracts) Act 1943
If any valuable benefit has been obtained, payment may be ordered by the court
