Frustration Flashcards
Paradine v Jane [1647]
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
Davis Contractors Ltd v Fareham Urban District Council [1956]
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
Taylor v Caldwell {1863]
Where an essential thing is unavailable making the performance of the contract impossible, the contract will be frustrated
Condor v Baron Knights [1966]
Where an essential person to the contract is unavailable = frustrated contract
Maritime National Fish Ltd v Ocean Trawlers Ltd [1935]
If the impossibility of performing the contract arises due to the claimant’s own choice this will not amount to frustration
Super Servant Two
Self-induced event will not frustrate the contract
Panalpina
Delay in performance of the contract has to be substantial for the contract to be frustrated
Metropolitan Water Board v Dick Kerr [1918]
Government intervention may frustrate the contract or where delay makes the contract impossible to fulfill or radically different
Fibrosa v Fairburn [1943]
If performnce becomes illegal = frustrated contract
Tsakiroglou & Co Ltd v Noblee Thori [1962]
Contract will not be frustrated if costs / price for performing the contract increase
Krell v Henry [1903]
Fundamental event does not occur = frustrated contract
Herne Bay v Hutton [1903]
A contract will not be frustrated if a cancelled event is not directly related to the main purpose of the contract
Joseph Constantine Steamship
Burden of proof is on the party making the claim
Chandler v Webster [1904]
Money paid before the frustrating event is recoverable; all outstanding money due prior to the frustrating event must be paid
Gamerco SA v ICM/Fair Warning [1995]
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
BP Exploration Co Ltd v Hunt [1979]
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
