Frustration

Question 1

What is a frustrating event

Answer 1

a frustrating even before a contract is complete may discharge(end) the contract

there are three types of frustrating events

Question 2

IMPOSSIBILITY OF PERFORMANCE

Answer 2

where its impossible for the contract to be completed (Nichol and Knight v Ashton Eldridge, Taylor v Caldwell)

will not apply if performance is possible just difficult or expensive than anticipated (David v Fareham, Tsakiroglou v Noblee Thorl)

Question 3

RADICAL CHANGE IN CIRCUMSTANCES

Answer 3

if change relates to main purpose of the contract (Krell v Henry).

The change must be sufficiently radical (Harne bay v Hutton)

Question 4

ILLEGALITY OF CONTRACT

Answer 4

where change in the law makes the contract illegal to perform ( Shipton Anderson, Fanny v James Fraser)

Question 5

what are the specific situations where frustration may be considered

Answer 5

Lease - National Carriers v Panalpina

Contract of employment

Question 6

where will frustration not apply

Answer 6

self induced i.e on one of the parties fault (party trying to claim frustration) - Maritime national fish v ocean trawlers

Question 7

Section 1(2) of the law reform (frustrating contracts) act 1943

Answer 7

money paid before the frustrating event is recoverable, minus the other parties just expense - Gamerco v ICM

this could include paying in advance for goods and then having the other party cancelled because new legislation had prohibited goods

Question 8

when will there no longer be an obligation to pay the agreed price for goods and services

Answer 8

when contract is frustrated

Question 9

Section 1(3)

Answer 9

no money has been paid in advance the value of any benefit gained by one party must go back to the other party

the judge will assess this - Hunt v BO