Frustrated Contracts Flashcards
Rule in Paradine v Jane:
If a person binds themselves to a contract, then that person is absolutely bound.
Doctrine of Frustration:
Paradane v Jane mitigated when the frustrating events:
- Were not thought about when the contract was made.
- Fundamentally changed the contract
- Events occur which neither party is responsible for
- Results in a situation which neither party would wish to be bound.
Case which doctrine of frustration emerged:
Taylor v Caldwell
Examples of Frustration:
- Destruction of object essential to performance of contract
- Personal incapacity
- Non-occurrence of specified event
- Supervening illegality
- Government interference
- Delay
Destruction of object essential to performance of contract
Taylor v Caldwell
Personal incapacity
Condor v The Barron Knights
Non-occurrence of specified event
Krell v Henry ‘the coronation and the flat’
Supervening illegality
Denny, Mott and Dickson v James B Frasier
Government interference
Metropolitan Water Board v Dick Kerr
Delay
May frustrate contract: Jackson v Union Marine insurance
Situations where frustration has been held not to occur:
- Because performance was expensive
- Alternative mode of performance is possible
- Frustration is self-induced
- Provision is made in the contract for frustrating event
Performance was expensive:
David Contractors v Fareham UDC
Alternative mode of performance is possible:
Tsakirogiou v Noblee and Thorn
Frustration is self-induced:
The Super Servant Two
Provision is made in the contract for frustrating event:
Jackson v Union Marine
