Financial adjustments Flashcards
1
Q
Appleby v Myers [1867]
machinery being installed destroyed by fire; no recovery for work because payment fell due on completion
A
- no payment for work (installing machines)
- payment fell due on completion of machinery
- machinery was destroyed before completion
2
Q
Chandler v Webster [1904]
coronation case; the loss lies where it falls
A
- coronation case
- Claimant paid most of the fee for his room in advance, but didn’t pay all of it
- after coronation was cancelled, he sued for his money back - contract frustrated
- defendant counter-sued for remainder of the fee
- CoA held that frustration only applies to obligations after contract is frustrated -> obligation to pay arose before frustrating event
- contract was frustrated, but claimant still had to pay
3
Q
Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour Ltd [1943]
war made it illegal to perform contract for purchase of machines; repayment of advance payment
A
- British company made contract with Polish company in 1939 -> Germany invaded and the two countries became at war
- this event (war) frustrated the contract
- overruled Chandler v Webster [1904]
- common law permits restitution for failure of consideration
- restitution of benefits received
- the Polish company was allowed to take back the £1,000 deposit given before the frustrating event
- this applies where there is a total failure of consideration
