Frustration Flashcards
Nichol and Knight v Ashton Eldridge
1) impossibility of performance, where it is impossible for the contract to be completed
Davis v Fareham
1) x apply if performance is possible just more difficult/ expensive than anticipated
Krell v Henry
2) a radical change in circumstances, if the change relates to the main purpose of the contract
Herne Bay v Hutton
2) change must be sufficiently radical
Shipton Anderson
3) illegality of the contract, where a change in law makes the contract illegal to perform
Maritime National Fish v Ocean Trawlers
4) x apply- it is self-induced ie one of the parties’ fault
John Walker and Sons
5) x apply- there was a foreseeable risk of the frustrating event occuring
Governing AoP
Law Reform (Frustrated Contracts) Act 1943
Section 1(2)
money paid before the frustrating event may be reclaimed, minus the other party’s expenses
Section 1(3)
the value of any benefit gained by one party, other than money received, must be paid back to the other party. judge will assess this
Definition
A frustrating event before the contract is completed may discharge (end) the contract (3 types)
Checklist
- define
- 1) impossibility 2) radical change 3) illegality
- 1) self-ind 2) foreseeable risk
- s1(2) + s1(3) of LR(FC)A ‘43
1) impossibility of performance, where it is impossible for the contract to be completed
Nichol and Knight v Ashton Eldridge
1) x apply if performance is possible just more difficult/ expensive than anticipated
Davis v Fareham
2) a radical change in circumstances, if the change relates to the main purpose of the contract
Krell v Henry