Frustration

Question 0

New position developed in common law

Answer 0

Caldwell v Taylor

A contract can be frustrated

Question 1

What is the general rule?

Answer 1

Contractual obligations are absolute.

Paradine v Jane

Question 2

A contract may be frustrated if:

Answer 2

1. An unforeseen event occurs
2. After the contract has been formed
   which was
3. Not the fault of either party and
4. Which makes the contract impossible to perform or radically different

Question 3

What is the effect of frustration of contract?

Answer 3

Contract automatically terminated

Future obligations discharged

Neither party entitled to damages

Question 4

In availability of a specific thing.

Answer 4

Taylor v Caldwell

Question 5

In availability of a particular person

Answer 5

Morgan v manser

Condor v baron knights

Question 6

What are the factors when considering whether the unavailability of a particular thing or person can frustrate a contract?

Answer 6

Length of contract, length of absence, must the contract be performed by that particular person

Question 7

Non-occurrence of fundamental event

Answer 7

Krell v Henry

Herne bay V Hutton

Roger Brownsword -
Consumer/business

Question 8

Government intervention?

Answer 8

Metropolitan v dick Kerr

Question 9

Delay

Answer 9

Metropolitan v dick Kerr

Question 10

What are the factors in relation to whether delay frustrates a contract?

Answer 10

• whether the contract provides for what should be the consequences of the delay.
• the likely length of delay
• any time set in the contract for the obligations, whether it is radically different from the contract the parties hard originally made

Question 11

What does the case Tsakiroglou say?

Answer 11

Even when suez war broke - meant ships dramatically changed their journeys. But that didnt mean a contract was frustrated.

Question 12

A contract gets more expensive to fulfill? Frustrated?

Answer 12

Davis v Fareham

nope

Question 13

Illegality

Answer 13

Fibrosa

Question 14

Restrictions - on the doctrine of frustration.

The frustrating event must be unforeseen

Answer 14

Davis v Fareham

Question 15

Force majeure

Answer 15

UCTA section 3 subject to reasonableness tests

Question 16

Eugenia- what is important about this case?

Answer 16

Lord denning, in obiter, said a foreseen frustrating act would frustrate the contract. The key factor was the foundation of the contract. The topic and issue.

Question 17

The event must be beyond the control of both paties

Answer 17

Maritime

Question 18

Superservant 2

Answer 18

Two ships - had contracted for possibility of both ships being contracted out.
One sunk.
The other had been contracted out. No frustration.

If only sunk ship in contract - frustration

Question 19

Burden of proof is on any party seeking to prove the other party caused or knew about the frustrating event

Answer 19

Josephine Constantine

Question 20

Frustration and land - whats the issue?

Answer 20

Panalpina

Frustration can apply to a lease of land.

Question 21

Relevant factors for frustration and land

Answer 21

Length of contract and length of time the party will be deprived of the use of the property

Question 22

Common law position post frustration

Answer 22

Unfair outcomes

Knell v Henry

Question 23

Whats the relevant case law for section 2(1) law reform (frustrated contracts) act 1943

Answer 23

Gamerco SA

The court has broad discretion as to how much expenses should be paid back

Question 24

Case law for section 1(3)

Answer 24

BP exploration - the sum of valuable benefit will be regarded subjectively - ie what is the value of the benefit?