Frustration

Question 1

Definition of frustration

Answer 1

Contract said to be frustrated if an unforeseen event occurs after formation which makes the contract impossible to perform or radically different

Exception to the rule of absolute obligations - paradine v. Jane 1647

Question 2

Frustration - remedies

Answer 2

No remedies as no breach of contract

Question 3

Frustration created by common law under

Answer 3

Taylor v Caldwell 1863 - contract for hire of concert hall destroyed by fire - implied condition contract had been discharged

Question 4

Frustrating event is one which

Answer 4

Makes contract impossible to perform
Outside control of the parties
Occurs due to the unavailability of a specific thing or person vital to the contract

Question 5

Events that cause frustration - unavailability of specific thing or person

Answer 5

Three main factors for person - length of contract, period of absence, must it be performed by particular individual.

Case Taylor v Caldwell 1863 - fire in hall
Case condor v baron Knights 1966 - medical condition

Question 6

Events that cause frustration - non occurrence of specific event fundamental event

Answer 6

Krell v Henry 1903 - hotel room just for day hire to see coronation
1)foundation of the contract event that had been prevented
2) was performance of the contract prevented
3) was event that prevented contract so unusual it could not have been contemplated by parties
Herne bay steamboat co v. Hutton 1903 - event to see fleet and coronation by boat - partial reformable could occur

Question 7

Events that cause frustration - government intervention

Answer 7

Metropolitan water board v dick Kerr and company 1918 - reservoir build frustrated as government ordered men to enlist for war effort and equipment used

Question 8

When will delay frustrate a contract

Answer 8

Length of delay
Time set in contract for obligation to be performed
If contract resumed after delay is it radically different
Failed delay
Tsakiroglou & co ltd v. Noblee Tharl 1962 - Suez Canal - made more expensive but not frustrated
Davis contractors ltd v Fareham urban district council 1956 - builder not able to get labour - was foreseeable

Question 9

Events that cause frustration - illegal

Answer 9

Fibrosa spolka akcyjna v fairbairn Lawson Combe Barbour ltd 1943 - no delivery to Poland as invaded by Germany

Question 10

Restrictions on frustration

Answer 10

1) event foreseen by the parties or should have been
Force majeure clause covering event expressly
2) no express provision but a foreseeable event

Question 11

Frustration and lease of land

Answer 11

National carriers ltd v panalpina (northern) ltd 1981 - 10yr lease not frustrated despite no access for 2 yrs

Factors how long lease / how long party will be deprived

Question 12

Effect and settling frustration - modified common law

Answer 12

Fibrosa spolka akcyjna v fairbairn Lawson Combe Barbour ltd 1943 - total failure of consideration money already paid repayable and money due need not be paid

Question 13

Effect of frustration under Statute The law reform (frustrated contracts) act 1943

Answer 13

Tries to do justice
Act deal with money paid and payable before frustration occurs
Being paid or expenses and valuable benefits
S1(2) overrides fibrosa - states can be reclaiming of expenses,however, court has broad discretion gamer V. I’m 1995
S1(3) deals with valuable benefit received before event
Case - b.p. Exploration co. Libya ltd v. Hunt 1979 - two distinct stages to making away under s1(3) - first benefit must be identified forms upper limit of award - secondly court assess sum which must not exceed 1

Question 14

Frustration statute

Answer 14

The Law Reform (frustrated contracts) Act 1943

Question 15

Frustration statute

Answer 15

The Law Reform (frustrated contracts) Act 1943