Frustration

Question 1

What is a frustrating event in contract law?

Answer 1

A frustrating event is an occurrence that ends a contract before its completion.

Question 2

How many types of frustrating events are there?

Answer 2

There are 3 types of frustrating events.

Question 3

What is one type of frustrating event?

Answer 3

Impossibility of performance.

Question 4

What does impossibility of performance refer to?

Answer 4

It refers to situations where it is impossible for the contract to be completed.

Question 5

Name a case that illustrates impossibility of performance.

Answer 5

Nichol and Knight v Ashton Eldridge.

Question 6

Name another case that illustrates impossibility of performance.

Answer 6

Taylor v Caldwell.

Question 7

True or False: A contract will still apply if performance is impossible due to a frustrating event.

Answer 7

False.

Question 8

What is a frustrating event in contract law?

Answer 8

A frustrating event is an occurrence that ends a contract before its completion.

Question 9

How many types of frustrating events are there?

Answer 9

There are 3 types of frustrating events.

Question 10

What is one type of frustrating event?

Answer 10

Impossibility of performance.

Question 11

What does impossibility of performance refer to?

Answer 11

It refers to situations where it is impossible for the contract to be completed.

Question 12

Name a case that illustrates impossibility of performance.

Answer 12

Nichol and Knight v Ashton Eldridge.

Question 13

Name another case that illustrates impossibility of performance.

Answer 13

Taylor v Caldwell.

Question 14

True or False: A contract will still apply if performance is impossible due to a frustrating event.

Answer 14

False.

Question 16

What is the definition of frustration in contract law?

Answer 16

Frustration occurs when a radical change in circumstances makes the performance of a contract impossible or significantly more difficult or expensive.

Question 17

What case illustrates that bad weather does not frustrate a contract if performance is still possible?

Answer 17

Davis v Fareham, Tsakiroglou v Noblee

Question 18

What must a change in circumstances relate to in order to frustrate a contract?

Answer 18

The main purpose of the contract.

Question 19

Which case demonstrates a radical change in circumstances resulting in frustration of a contract?

Answer 19

Krell v Henry

Question 20

What is a specific example of illegality causing frustration in a contract?

Answer 20

When a change in law makes the contract illegal to perform, as shown in Shipton Anderson, Denny v James Fraser.

Question 21

What happens to a lease contract if a special kind of fuel is unavailable for a short time?

Answer 21

The lease contract may not be frustrated, as seen in National Carriers v Panalpina.

Question 22

True or False: Frustration applies if one party is at fault for the frustrating event.

Answer 22

False

Question 23

What is the legal consequence if a frustrating event was foreseeable?

Answer 23

Frustration will not apply.

Question 24

What can be recovered under Section 1(2) of the Law Reform (Frustrated Contracts) Act 1943?

Answer 24

Money paid before the frustrating event, minus just expenses.

Question 25

Fill in the blank: The case __________ illustrates that frustration will not apply if the frustrating event is self-induced.

Answer 25

Maritime National Fish v Ocean Trawlers

Question 26

What does the case John Walker and Sons illustrate regarding frustration?

Answer 26

There was a foreseeable risk of the frustrating event occurring.

Question 27

What is the implication for contracts of employment if a party is instructed not to perform for a specified time?

Answer 27

The contract may be considered frustrated.

Question 28

In the case of Gamerco v ICM, what is the ruling regarding money paid before a frustrating event?

Answer 28

It is recoverable, minus the other party's just expenses.

Question 29

What is an example of a contract being frustrated due to cancellation of a main event?

Answer 29

Herne Bay v Hutton

Question 30

Fill in the blank: A contract is frustrated when a significant change in circumstances occurs, making performance __________.

Answer 30

impossible or significantly more difficult

Question 31

What is one type of specific situation where frustration may be considered?

Answer 31

Leases or contracts of employment.

Question 33

What happens when a contract is frustrated?

Answer 33

There is no longer an obligation to pay the price agreed for goods and services. ## Footnote The money that X paid in advance will be paid back by Y, but Y can claim his expenses.

Question 34

What does Section 1(3) state regarding contracts with no money paid in advance?

Answer 34

The value of any benefit gained by one party must be paid back to the other party. ## Footnote This is illustrated in the case of Hunt v BP.

Question 35

In a case of contract frustration, what might a judge assess?

Answer 35

The judge will assess the value of any benefit gained by one party. ## Footnote For example, if X attracted more customers to his pub because of Y's band, the court may award damages reflecting the increase in custom for X.

Question 36

What is the conclusion regarding a frustrated contract?

Answer 36

The contract is frustrated or not frustrated, and X will be in breach of contract if he does not supply the goods to Y.