Frustration Flashcards
What is the General rule of Frustration?
- case
Where a party to a contract is prevent from keeping the promise because of an unforeseeable, intervening act
- Taylor v Caldwell
Elements to discharge by Frustration
1) Unforeseen event
2) Performance it either
- Impossible
- Illegal
- radically different)
Explain Impossibility?
- cases
Contract subject matter destroyed
- Taylor v Caldwell
Subject mater unavailable
- Jackson v Union Marine
- The Nema
The Evia (No.2)
Explain Illegality
- cases
Purpose of contract become illegal
- Denny, Mott, Dickson v James b Fraser + Co
- Shipton Anderson v Harrison Bros
Explain radical change in circumstances
- cases
Purpose of contract has become radically different from what was originally intended
- Krell v Henry
What is not Frustration?
- cases
Self induced
- Maritime National Fish v Ocean Trawlers
Contract Less Profitable
- Davis Contractors v Fareham Urban District Council
Foreseeable risk
- Armchair Answercall v People in mind
Force Majeure clauses
- Gold Group Properties v BDW Trading
Remedies for Frustration?
Law Reform (Frustrated Contracts) Act 1943
s1(2)
- advanced payments can be recovered
- person receiving payment can retain/recover sum on account on expenses