Frustration Flashcards
If a party has assumed an absolute obligation, even if circumstances make performance of this obligation impossible, they are liable for breach of contract
Paradine v Jane
A contract is frustrated when:
Taylor v Caldwell
- a supervening event; which
- is unforeseen;
- is outside the control of the parties (Maritime Fish); and
- renders the contract impossible to perform, or radically different (Davis Contractors v Fareham)
Unavailability of a specific person vital to the contract will frustrate contract
Condor v Barron Nights
Unavailability of specific thing vital to the contract will frustrate contract
Taylor v Caldwell
Non-occurence of a fundamental event will frustrate contract
Krell v Henry
Government intervention may frustrate contract
Metropolitan Water Board v Dick Kerr
Delay may frustrate a contract
Met Water Board v Dick Kerr
Illegality may frustrate a contract
Fibrosa v Fairbairn
An event that was foreseen or should have been foreseen will not frustrate a contract
Davis Contractors v Fareham
Prices going up or contract becoming more expensive/difficult to perform will not frustrate contract
Davis Contractors v Fareham
An essential person being unavailable for an insignificant period will not frustrate contract
(no authority for this)
If an event is not directly related to objective of contract, it will not frustrate contract
Herne Bay Steamboat v Hutton
If event is in any way self-induced, will not frustrate contract
The Super Servant Two
National Carriers v Panalpina
Not being able to use property for 2/10 years was held not to be a frustrating event
If frustrated, contract is automatically discharged/terminated
Fibrosa v Fairbairn
if frustrated, future obligations cease
Krell v Henry
Money paid before the frustrating event is recoverable
s.1(2) LR(FC)A 1943
Money payable before frustrating event need not be paid
s.1(2) LR(FC)A 1943
Expenses incurred by payee are recoverable if
incurred for performance of contract
is subject to price ceiling
s.1(2) LR(FC)A 1943
Gamerco
If there is any valuable benefit that survives the frustrating event, court may order a ‘just sum’ to be paid with regard to all the circumstances
s.1(3) LR(FC)A 1943
Valuable benefits must be ‘benefits accrued in, or for the purpose of the contract’
s.1(3) LR(FC)A 1943
Size of valuable benefit is value of benefit to recipient at time of event and will take into account expenses awarded under s.1(2)
s.1(3) LR(FC)A 1943
BP Exploration Co v Hunt
