Frustration Flashcards
New position developed in common law
Caldwell v Taylor
A contract can be frustrated
What is the general rule?
Contractual obligations are absolute.
Paradine v Jane
A contract may be frustrated if:
- An unforeseen event occurs
- After the contract has been formed
which was - Not the fault of either party and
- Which makes the contract impossible to perform or radically different
What is the effect of frustration of contract?
Contract automatically terminated
Future obligations discharged
Neither party entitled to damages
In availability of a specific thing.
Taylor v Caldwell
In availability of a particular person
Morgan v manser
Condor v baron knights
What are the factors when considering whether the unavailability of a particular thing or person can frustrate a contract?
Length of contract, length of absence, must the contract be performed by that particular person
Non-occurrence of fundamental event
Krell v Henry
Herne bay V Hutton
Roger Brownsword -
Consumer/business
Government intervention?
Metropolitan v dick Kerr
Delay
Metropolitan v dick Kerr
What are the factors in relation to whether delay frustrates a contract?
- 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any time set in the contract for the obligations, whether it is radically different from the contract the parties hard originally made
What does the case Tsakiroglou say?
Even when suez war broke - meant ships dramatically changed their journeys. But that didnt mean a contract was frustrated.
A contract gets more expensive to fulfill? Frustrated?
Davis v Fareham
nope
Illegality
Fibrosa
Restrictions - on the doctrine of frustration.
The frustrating event must be unforeseen
Davis v Fareham
Force majeure
UCTA section 3 subject to reasonableness tests
Eugenia- what is important about this case?
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.
The event must be beyond the control of both paties
Maritime
Superservant 2
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
Burden of proof is on any party seeking to prove the other party caused or knew about the frustrating event
Josephine Constantine
Frustration and land - whats the issue?
Panalpina
Frustration can apply to a lease of land.
Relevant factors for frustration and land
Length of contract and length of time the party will be deprived of the use of the property
Common law position post frustration
Unfair outcomes
Knell v Henry
Whats the relevant case law for section 2(1) law reform (frustrated contracts) act 1943
Gamerco SA
The court has broad discretion as to how much expenses should be paid back
Case law for section 1(3)
BP exploration - the sum of valuable benefit will be regarded subjectively - ie what is the value of the benefit?
