discharge by frustration

Question 1

What does it mean if a contract is frustrated?

Answer 1

If a party to a contract was prevented from keeping the promise because of an unforeseeable, intervening event, they would not be liable for breach of contract.

Question 2

Taylor v Caldwell

Answer 2

Example case, when a contract is frustrated nobody is at fault

Question 3

COVID based frustration quote

Answer 3

“ the frustrated purpose must be so completely the basis of the contract that, as both parties understood, the transaction would have made little sense

Question 4

What are the 3 requirements for a contract to be frustrated?

Answer 4

• there is an event after the agreement has been made
• the event has to be unforseeable (beyond contemplation of the party)
• has to be beyond the parties control

Question 6

What are the three ways a contract can become frustrated?

Answer 6

• impossible
• illegal
• radical change in circumstance

Question 7

Taylor v Cadwell (impossible)

Answer 7

became impossible because the hall burnt down

Question 8

Denny, Mott and Dickinson LTD (illegal)

Answer 8

if a new law is passed that then makes the contract illegal the contract becomes frustrated

Question 9

Krell v Henry (radical)

Answer 9

a man booked a hotel to see the kings coronation, when it was postponed he no longer needed the room