Frustration Flashcards
What is a frustrating event in contract law?
A frustrating event is an occurrence that ends a contract before its completion.
How many types of frustrating events are there?
There are 3 types of frustrating events.
What is one type of frustrating event?
Impossibility of performance.
What does impossibility of performance refer to?
It refers to situations where it is impossible for the contract to be completed.
Name a case that illustrates impossibility of performance.
Nichol and Knight v Ashton Eldridge.
Name another case that illustrates impossibility of performance.
Taylor v Caldwell.
True or False: A contract will still apply if performance is impossible due to a frustrating event.
False.
What is a frustrating event in contract law?
A frustrating event is an occurrence that ends a contract before its completion.
How many types of frustrating events are there?
There are 3 types of frustrating events.
What is one type of frustrating event?
Impossibility of performance.
What does impossibility of performance refer to?
It refers to situations where it is impossible for the contract to be completed.
Name a case that illustrates impossibility of performance.
Nichol and Knight v Ashton Eldridge.
Name another case that illustrates impossibility of performance.
Taylor v Caldwell.
True or False: A contract will still apply if performance is impossible due to a frustrating event.
False.
What is the definition of frustration in contract law?
Frustration occurs when a radical change in circumstances makes the performance of a contract impossible or significantly more difficult or expensive.
What case illustrates that bad weather does not frustrate a contract if performance is still possible?
Davis v Fareham, Tsakiroglou v Noblee
What must a change in circumstances relate to in order to frustrate a contract?
The main purpose of the contract.
Which case demonstrates a radical change in circumstances resulting in frustration of a contract?
Krell v Henry
What is a specific example of illegality causing frustration in a contract?
When a change in law makes the contract illegal to perform, as shown in Shipton Anderson, Denny v James Fraser.
What happens to a lease contract if a special kind of fuel is unavailable for a short time?
The lease contract may not be frustrated, as seen in National Carriers v Panalpina.
True or False: Frustration applies if one party is at fault for the frustrating event.
False
What is the legal consequence if a frustrating event was foreseeable?
Frustration will not apply.
What can be recovered under Section 1(2) of the Law Reform (Frustrated Contracts) Act 1943?
Money paid before the frustrating event, minus just expenses.
Fill in the blank: The case __________ illustrates that frustration will not apply if the frustrating event is self-induced.
Maritime National Fish v Ocean Trawlers
What does the case John Walker and Sons illustrate regarding frustration?
There was a foreseeable risk of the frustrating event occurring.
What is the implication for contracts of employment if a party is instructed not to perform for a specified time?
The contract may be considered frustrated.
In the case of Gamerco v ICM, what is the ruling regarding money paid before a frustrating event?
It is recoverable, minus the other party’s just expenses.
What is an example of a contract being frustrated due to cancellation of a main event?
Herne Bay v Hutton
Fill in the blank: A contract is frustrated when a significant change in circumstances occurs, making performance __________.
impossible or significantly more difficult
What is one type of specific situation where frustration may be considered?
Leases or contracts of employment.
What happens when a contract is frustrated?
There is no longer an obligation to pay the price agreed for goods and services.
The money that X paid in advance will be paid back by Y, but Y can claim his expenses.
What does Section 1(3) state regarding contracts with no money paid in advance?
The value of any benefit gained by one party must be paid back to the other party.
This is illustrated in the case of Hunt v BP.
In a case of contract frustration, what might a judge assess?
The judge will assess the value of any benefit gained by one party.
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.
What is the conclusion regarding a frustrated contract?
The contract is frustrated or not frustrated, and X will be in breach of contract if he does not supply the goods to Y.
