Discharge of Contract: Frustration Flashcards
What is the Doctrine of Frustration?
Parties to a contract are bound to fulfil obligations, though this is often unfair
What case can be used to demonstrate the Doctrine of Frustration?
Paradine v Jane
What was held in Taylor v Caldwell?
If a contract relies on something existing that is now non-existent, the performance of the contract is excused
What was held in National Carriers v Panalpina?
The circumstances did not fundamentally change the nature of the contract and so it had not been frustrated
What is a force majeure clause?
Excludes liability in circumstances where there are extraordinary events
What is needed for a contract to be frustrated?
Performance needs to be impossible through circumstances beyond the parties control due to:
- Impossibility
- Subsequent illegality
- Destruction of a common venture
What was held in Condor v The Baron Knights?
The drummer in the contract was unwell and so it was necessary to have a stand in musician- the contract was frustrated
What is ‘subsequent illegality’?
Law changes so the contract is illegal to perform
What was held in Re Shipton?
Subsequent changes to the law meant performance was illegal so the contract was frustrated
What is a ‘radical change in circumstances’?
The contract is unable to achieve its commercial purpose
What was held in Krell v Henry?
The contract was frustrated by illness and so couldn’t achieve its commercial purpose
What was held in Herne Bay v Hutton?
Edward VIII’s illness did not frustrate the contract as the ships could still be viewed
What was held in Maritime National Fish v Ocean Trawlers?
The Doctrine of Frustration does not apply if frustration is self-induced
What was held in Davis Contractors v Fareham UBC?
The contract was becoming less profitable, so the contract was not frustrated due to it becoming pointless
What was held in Amalgamated Investment v Walker?
If the frustrating event is foreseeable, there is not frustration
