Frustration

Question 1

The Eugenia (1964)

Answer 1

Self Induced Frustration

The CA said that the blocking of the Suez Canal did not frustrate the contract as it was their own fault the ship was trapped

Question 2

Maritime National Fish v Ocean Trawlers (1936)

Answer 2

Self Induced Frustration

Could only get 3 licenses for 5 ships
Claimant argued this frustrated the contracts for the other 2 ships
This was self-induced frustration as there was a choice of which ship to give the license to

Question 3

The Super Servant 2 (1990)

Answer 3

Defendants entered into a contract to supply either the SS1 or the SS2
Before collection the SS2 sunk and the SS1 had been used for another contract
This did not frustrate the contract
Self induced frustration

Question 4

Fibrosa Spolka v Fairbairn (1943)

Answer 4

Scottish sale of textiles to Poland
Polish company sent deposit
Frustrated by war
Held that the Polish company could get their deposit back as there had been a TOTAL FAILURE OF CONSIDERATION

Question 5

Taylor v Caldwell (1863)

Answer 5

Burning down of a concert hall

This frustrated the contract

Question 6

Krell v Henry (1903)

Answer 6

The King falling ill frustrated the contract for the renting of a flat over Pall Mall

Question 7

Herne Bay Steam Boat v Hutton (1903)

Answer 7

Defendant hired ship to sell tickets to watch the procession
The king falling ill did not frustrate the contract

Question 8

“The Sea Angel” 2007

Answer 8

Frustration applies when there is…

1) A radical change in the contract
2) The contract must not distribute the risk to one party in the contract
- This takes a multi-factoral approach
(a) Terms of the contract
(b) The context
(c) Knowledge of the risks
(d) The nature of the supervening event
(e) The possibility of continued performance

Question 9

Ertel Bieber v Rio Tinto (1918)

Answer 9

Became illegal to deliver the ore to Germany

Question 10

Metropolitan Waterboard v Dick Kerr (1918)

Answer 10

Government ordered them to stop building the reservoir

Question 11

“The Nema” (1982)

Answer 11

Force Majeure on strikes

The Force Majeure went on so long that it could be considered frustration

Question 12

Davis Contractors v Fareham UDC (1956)

Answer 12

Builders costs rose significantly

Lord Radcliffe held that more onerous work would not frustrate the contract

Question 13

Paradine v Jane (1647)

Answer 13

The fact that his land was ruined by a foreign army did not frustrate the contract
Example of Absolute Contract Liability

Question 14

Tamplin Steamship v Anglo Mexican Petroleum Products (1916)

Answer 14

The requisitioning of a charter party was not enough to frustrate the contract
Professor Paul - optimistic about the length of WW1

Question 15

Tsakiroglou v Noblee Thorl (1962)

Answer 15

Transportation of some sudanese peanuts
Closing of the Suez Canal just made delivery more onerous, but was still possible within the timeframe
Did not frustrate the contract
Was not helpful that it was FORSEEABLE