Frustration

Question 1

‘Frustration of a contract takes place when there supervenes an event … which so significantly changes the nature … of the outstanding contractual rights and/or obligations from what the parties could reasonably have contemplated at the time of its execution that it would be unjust to hold them to the literal sense of its stipulations in the new circumstances’

Answer 1

National Carriers Ltd v Panalpina - Lord Simon

Question 2

Impossibility of performance through destruction or non-availability of subject matter (2)

Answer 2

Taylor v Caldwell

Robinson v Davison

Question 3

Impossibility of agreed method of performing
Frustrated when a specified method of performing is impossible

Not frustrated when there is another available option to perform and one specific way was not chosen

Answer 3

Nicholl and Knight v Ashton, Eldridge & Co

Tsakiroglou & Co v Noblee Thorl

Question 4

Frustrated when performance would be illegal (2)

Answer 4

Fibrosa v Fairbairn

Metropolitan Water Board v Dick, Kerr & Co

Question 5

Frustrated when non-performance of an event wholly defeats the purpose of the contract / performance would be radically different

Where performance is not radically different / party still substantially receives intended benefit, not frustrated

Answer 5

Krell v Henry

Herne Bay Steam Boat v Hutton

Question 6

Contract will not be frustrated simply because performance becomes more onerous - effect is not sufficiently fundamental

Answer 6

The Eugenia

Davis Contractors v Fareham

Question 7

Contract will not be frustrated where frustration is self - induced (2)

Answer 7

Maritime National Fish Ltd v Ocean Trawlers

Lauritzen v Wijsmuller (The Super Servant 2)

Question 8

Contract will not be frustrated where one of the parties has assumed the risk of the occurrence/ non-occurrence of event (or if the event was seen as likely to occur/ a real possibility)

Answer 8

Amalgamated Investment & Property Co Ltd v John Walker & Sons Ltd

Walton Harvey v Walker

Blackburn Bobbin v Allen

Question 9

When there has been a total failure of consideration, party can recover money paid under the contract

Answer 9

Fibrosa v Fairbairn

Question 10

Court used their limited power of adjustment given in Law Reform Frustrated Contracts Act 1943
S 1(2) in ....

Answer 10

Gamerco SA v ICM/ Fair Warning Agency

Question 11

Section 1(3) = when party has conferred a benefit other than money and court applied this in….

Answer 11

BP Exploration Co (Libya) v Hunt