Frustration

Question 1

Paradine v Jane [1647]

Answer 1

If a party assumes an absolute obligation in a contract , then the parties to it will still be liable even if the circumstances make the performace impossible

Question 2

Davis Contractors Ltd v Fareham Urban District Council [1956]

Answer 2

Frustration occurs when, without default to any party, a contractual obligation has become incapable of being performed because the circumstances would render the performance radically different from what was undertaken in the contract.

A contract will not be frustrated if an interfering event should have been foreseen or has merely made the contract more expensive or inconvenient to perform; the performance of the contract must be radically different

Question 3

Taylor v Caldwell {1863]

Answer 3

Where an essential thing is unavailable making the performance of the contract impossible, the contract will be frustrated

Question 4

Condor v Baron Knights [1966]

Answer 4

Where an essential person to the contract is unavailable = frustrated contract

Question 5

Maritime National Fish Ltd v Ocean Trawlers Ltd [1935]

Answer 5

If the impossibility of performing the contract arises due to the claimant’s own choice this will not amount to frustration

Question 6

Super Servant Two

Answer 6

Self-induced event will not frustrate the contract

Question 7

Panalpina

Answer 7

Delay in performance of the contract has to be substantial for the contract to be frustrated

Question 8

Metropolitan Water Board v Dick Kerr [1918]

Answer 8

Government intervention may frustrate the contract or where delay makes the contract impossible to fulfill or radically different

Question 9

Fibrosa v Fairburn [1943]

Answer 9

If performnce becomes illegal = frustrated contract

Question 10

Tsakiroglou & Co Ltd v Noblee Thori [1962]

Answer 10

Contract will not be frustrated if costs / price for performing the contract increase

Question 11

Krell v Henry [1903]

Answer 11

Fundamental event does not occur = frustrated contract

Question 12

Herne Bay v Hutton [1903]

Answer 12

A contract will not be frustrated if a cancelled event is not directly related to the main purpose of the contract

Question 13

Joseph Constantine Steamship

Answer 13

Burden of proof is on the party making the claim

Question 14

Chandler v Webster [1904]

Answer 14

Money paid before the frustrating event is recoverable; all outstanding money due prior to the frustrating event must be paid

Question 15

Gamerco SA v ICM/Fair Warning [1995]

Answer 15

Deciding what amount of expenses are recoverable under s. 1(2) LR(FC)A 1943, courts task is justice not obliged to award the full amount

Question 16

BP Exploration Co Ltd v Hunt [1979]

Answer 16

Deciding the size of sum to be awarded under s. 1(3) LR(FC)A 1943, value of the benefit has to be first identified. This will be the ceiling and any expenses incurred by the party with benefit will be dedicated as well as any money ordered to be paid under s.1(2), the courts then decide on a just sum