discharge by frustration

Question 1

impossibility of performance

Answer 1

• subject matter is destroyed
• subject matter is unavailable
• one of the parties dies/illness
• risk of the contract being unable to be performed completely

Question 2

frustrating events

Answer 2

• impossibility of performance
• illegal to perform
• contract is fundamentally different

Question 3

discharge by frustration

Answer 3

• occurs when the contract can’t be performed due to unforeseen circumstances

Question 4

performance becomes illegal

Answer 4

• metropolitan water board v dick kerr

Question 5

when frustration can’t apply

Answer 5

• self induced
• contract has become less profitable
• frustrating event was a foreseeable risk/was mentioned in the contract

Question 6

contract is fundamentally different

Answer 6

• the rental purpose of the contract is destroyed by the frustrating event

Question 7

self induced frustration

Answer 7

• when the frustrating event is within the contract of either party
• maritime national fish v ocean trawlers

Question 8

contract is less profitable

Answer 8

• davis contractors v fareham

Question 9

event was a reasonably foreseeable risk

Answer 9

• contract won’t be frustrated if the event was within the contemplation of the parties at the time the contract was entered into
• amalgamated investment v john walker

Question 10

frustration remedies

Answer 10

• common law
• law reform act 1943

Question 11

common law

Answer 11

• if a contract is frustrated, the parties are released from future obligations but must continue with the obligations that arose before frustration
• chandler v webster

Question 12

law reform act 1943

Answer 12

• s1(2): money already paid is recoverable
• s1(2): money due under the contract is recoverable
• s1(2): reward for a party who has carried out work under the contract
• s1(3): a party who has performed the contract may recover