Frustration Flashcards
What can a frustrating event do to a contract ?
A frustrating event before the contract is completed may discharge ( end ) the contract , there are 3 types of frustrating event.
What is the first type of frustrating event + cases ?
Impossibility of performance , where it is impossible for the contract to be completed ( NICHOLS and KNIGHT v ASHTON ELDRIDGE , TAYLOR v CALDWELL ).
How would a party not be able to apply this + cases ?
It won’t apply if the performance is possible just more difficult and expensive than anticipated ( DAVIS v FAREHAM , TSAKIROGLOU v NOBLEE THORL )
What is the second type of frustrating event + case ?
A radical change of circumstances if the change relates to a main purpose of the contract ( KRELL v HENRY ) .
What must the change be + case ?
The change must be sufficiently radical ( HERNE BAY v HUTTON ) .
What is the third type of frustrating event + cases ?
Illegality of the contract, where a change in the law makes the contract illegal to perform ( SHIPTON ANDERSON , DENNY v JAMES FRASER )
What are the other specific situations where frustration may be considered + cases ?
Leases ( NATIONAL CARRIERS v PANALPINA ) and/or contracts of employment ( ROBINSON v DAVIDSON ) .
However where will frustration not apply + cases ?
If it is self-induced i.e. one of the parties’ fault ( the party trying to claim frustration ) ( MARITIME NATIONAL FISH v OCEAN TRAWLERS ) and/or if there was a foreseeable risk of the frustrating event occurring ( JOHN WALKER and SON ) .
What if there has been a frustrating event where money has been paid + case ?
Under S 1(2) of the Law Reform ( Frustrated Contracts ) Act 1943, money paid before the frustrating event is recoverable , minus the other parties “just” expenses ( GAMERO v ICM ).
What does this also include ?
This also includes paying in advance for goods and then having the order cancelled because the new legislation has prohibited these good.
What about when the contract is frustrated ?
When the contract s frustrated , there is no longer an obligation to pay the price agreed for goods and services.
What about if there has been a frustrating event where no money has been paid + case ?
Under Section 1(3) , where no money has been paid in advance, the value of any benefit gained by one party must be paid back to the other party. The judge will assess this ( HUNT v BP ).
What is one of the other specific situations where frustration may be considered + cases ?
Leases ( NATIONAL CARRIERS v PANALPINA ) and/or contracts of employment ( ROBINSON v DAVIDSON ) .
Where will frustration not apply + cases ?
If it is self-induced i.e. one of the parties’ fault ( the party trying to claim frustration ) ( MARITIME NATIONAL FISH v OCEAN TRAWLERS ) .
What if there has been a frustrating event where money has been paid + case ?
Under S 1(2) of the Law Reform ( Frustrated Contracts ) Act 1943 , money paid before the frustrating event is recoverable , minus the other parties ‘just’ expenses ( GAMERO v ICM ).
What does this also include ?
This also includes paying in advance for goods and then having the order cancelled because new legislation has prohibited these goods.
What about when the contract is frustrated ?
When the contract is frustrated , there is no longer an obligation to pay the price agreed for goods and services.
What if there has been a frustrating event where no money has been paid + case ?
Under S 1(3) , where no money has been paid in advance , the value of any benefit gained by one party must be paid back to the other party. The judge will assess this ( HUNT v BP ) .
