frustration

Question 1

what is frustration

Answer 1

developed to mitigate the effects of absolute contact under which party could escape liability on basis that performance had become impossible or futile

Question 2

Jane v paradine facts

Answer 2

WAR
- p leased farm 2 Jane, civil war began after contract an janes land was seized
- p sued for unpaid rent

Question 3

Jane v paradine HELD

Answer 3

• court held that Jane was liable for the unpaid rent as the contract was not frustrated

Question 4

Taylor v caldwell FACTS

Answer 4

• caldwell rented music hall to Taylor and then a fire destroyed the hall before performance and T sued 4 BOC

Question 5

Taylor v caldwell HELD

Answer 5

• C released on obligations as fire frustrated the contract as the call was the subject matter of the contract and it was unavailable

Question 6

krell v Henry facts

Answer 6

• K rent flat to H for high price to watch the royal proceedings which were cancelled and h refused to pay
• K argued flat still avail and H agreed that rental purpose was unattianable

Question 7

krell v Henry held

Answer 7

-main purpose of contract couldn’t be fulfilled so was frustrated and the high price was due to the royal procession

Question 8

what is legal test per Davis

Answer 8

• circumstances become/change so drastically that the performance of the contract become radically diffenrt from what originally contemplated

Question 9

rayneon v fraser facts

Answer 9

• F contract w r for neon sign 4 advert then nz govt banned the neon signs so F stopped paying
• r sued for unpaid rent

Question 10

rayneon v fraser held

Answer 10

• court found that the contract had frustrated due to supervening illegality and the performnace was impossible so F not needed to pay rent

Question 11

3 types of super veining events for frustration

Answer 11

1. beyond the control of parties
2. unattainabilty of purpose
3. Self induced frustration

Question 12

what is the high threshold of frustration

Answer 12

• needs to be kept within narrow limits as the effect of frustration is to kill the contract

Question 13

davis contractors v Farnham urban district council facts

Answer 13

• d to build lots of houses in 8 months but there was shortage of labour so was delayed 14 month and costed extra 1,500

Question 14

davis contractors v Farnham urban district council held

Answer 14

• court found that contract wasn’t frustrated it was just more expensive

Question 15

tsakiroglou v noblee facts

Answer 15

• t contracted to ship peanuts for set price through the suex canal which them got closed but the contact didn’t specify a alternative route and alternative route 4x cost
• t argued frustration as Suez closed

Question 16

tsakiroglou v noblee held

Answer 16

• not frustration as increased cost not frustration unless it is not possible

Question 17

self induced frustration

Answer 17

• party cannot claim 2 be discharged from a contract due to an intervening event if that event was caused by your own choices

Question 18

maritime v ocean traveler facts

Answer 18

• m getting lisnces for 3 out of 5 boats and chose for charted boat to not get one so it couldn’t operate as a fishing boat and then m sued for BOC as he wasn’t Able to used finishing bot

Question 19

maritime v ocean traveler held

Answer 19

• not frustration as m chose to exclude the fishing boat and events of frustration must be out of control of the parties

Question 20

Lauritzen v Wijsmuller facts

Answer 20

• L agreed to transport oil rig via one of two units they owned
• L claimed contract was frustrated as one of the units was being used so argued for discharge from contract due to impossibility

Question 21

Lauritzen v Wijsmuller held

Answer 21

• not frustrated as the contract for for one of the two unit and 1 of them was available and the choice was avoidable and it was foreseeable

Question 22

what is the multifactorial approach to frustration

Answer 22

• consider
  1. contract terms
  2. context
  3. parties expectations
  4. supervening event nature and forsee
  5. feasibility of future performance

Question 23

Brisbane city council v group projects

Answer 23

• frustration though each judgement not set rules, supervening event must be significant on the contract foundation

Question 24

what is the nz approach to frustration

Answer 24

• use the multifactorial approach to remedy injustice and assess frustration ensuring fairness between parties

Question 25

planet kids facts

Answer 25

• pk leased land form auk council and akl council wanted land for road plans so at that time pk was going to surrender lease and transfer assets but then there was a fire that activated claused in contact that reverted the lease back to AKL
• AC claims contract was frustrated and reused to pay PK because the ‘already have lease’

Question 26

planet kids held

Answer 26

no frustration and AC need to pay PK, there was only impartial impossibility, main purpose pf contact was to provide certainty NOT JUST acquiring the lease and that AC wouldn’t suffer as entered for commercial reason and knew lease could end early

Question 27

s 60 ccla

Answer 27

if contract is frustrated, parties are discharged from further obligations/performance of the contract

Question 28

s61 ccla

Answer 28

• money paid b4 contract is discharged can be recovered by the payer and money unpaid b4 discharge is no longer payable

Question 29

s62 ccla

Answer 29

• allows court to permit a party who incurred expenses before contact discharge to recover but this recovery cannot exceed the amount paid

Question 30

s63 ccla

Answer 30

• b can recover a sum from A that the courts think is just based on
• a expenses in contract
• impact of circumstances

Question 31

limitation on s63 ccla

Answer 31

• recoverable sum cannot exceed value of a benefit, excludes payments made under 61