Frustration

Question 1

Frustration is:

Answer 1

Unforeseeable events which take place after the contract has been entered into which make the contract Illegal or Impossible to perform

Question 2

Frustration of contract results in:

Answer 2

Termination of Contract

Question 3

Frustration occurs when it becomes Impossible to perform Contract

Answer 3

Taylor v Caldwell
Jackson v Union Marine
Asfar v Blundell

Question 4

If contract is just much more difficult to perform

Answer 4

If the contract is not so substantially different so as to remove all benefit from the contract but just makes it more difficult then no frustration occurs

Davis Contractors v Fareham
National carriers v Panalpina

Question 5

Government Intervention

Answer 5

Requisition may frustrate the contract if it Radically alters the contract
Tamplin v Anglo Mexican (didn’t)
British Petroleum v Hunt (did)

Question 6

Failure of Source of Goods

Answer 6

If the agreement is to sell a very specific good that without fault perished then its frustrated
Howell v Coupland

Question 7

Common Purpose of Contract

Answer 7

If it can no longer be performed at all then it can frustrate; Coronation Cases:
Krell v Henry
Herny Bay v Hulton

Question 8

If it Subsequently becomes Illegal to perform

Answer 8

If it becomes illegal to perform then it frustrates

Fibrose v Fairbairn

Question 9

Frustrated Contract Act 1943

Answer 9

S. 1(2) $ paid before frustration event is recoverable and money payable no longer payable

s. 1(3) as well

Question 10

Frustration: What must be established in order to recover expenses

Answer 10

Gamersco v Fair Warning

1) D incurred expense paid or payable
2) before the frustration
3) In performance of the contract
4) for the purpose of performance