Frustration- limits and remedies Flashcards
What are the 3 limits to frustration?
- Self induced
- Reduced profit
- Foreseeability
What is meant by self- induced?
- Could one of the parties have stopped it from happened.
Which case goes with self induced?
Maritime national fish v Ocean Trawlers
Maritime national fish V Ocean Trawlers?
-bought trawlers without relevant licences
-was self induced.
What is meant by reduced profits?
-just because contract less profitable- wont frustrate.
Which case goes with reduced profits?
-Davis contractors V Fareham UDC
Davis contractors V Fareham UDC?
-contracters upset it took 14 months more to build house bc of builder shortage
-not frustrated- delays are reasonable when building houses + accepted. (just because it made things more difficult.
What is meant by foreseeablity?
-A contract is not frustrated if the risk is foreseeable.
Which case goes with foreseeability?
Amalgamated investments V John walker
Amalgamated investments & property V John walker and sons.
-contract made with buyer- they were going to redevelop
-finds out its listed- this is always a risk with old buildings- no frus.
Which act outlines the remedies for frustration?
-Law reform frustrated contracts act 1943.
-s1 (2) and S1 (3)
What does S1 (2) of the law reform frustrated contracts act 1943 do?
-right to recover any money already paid + withhold any money to pay.
-at discression can allow money to be retained/ claimed to cover expenses.
What does S1 (3) of the law reform frustrated contracts act 1943 do?
-if party recieved benefit (not £) under contract before frus
-compensate this.
