Remedies for Frustration

Question 1

when is a remedy for frustration usually used?

Answer 1

a contract ends but there were problems when money was paid prior.

Question 2

Krell v Henry

Answer 2

facts: Henry hired a room to watch a coronation procession, but it was postponed, frustrating the contract. He had paid £25 of the £75 total but couldn’t recover the £25 paid.
held: Henry couldn’t recover the £25 he paid, despite the frustration of the contract due to the postponement of the coronation procession.
principle: if a contract is frustrated, the party who has paid money cannot necessarily recover it.

Question 3

s1(2) of remedies act

Answer 3

money paid before frustration is recoverable
money payable before the event is no longer payable
if the party due to collect money incurs expenses resulting from the frustrating event, the court may award expenses

Question 4

Gamerco SA v ICM Fair Warning Agency ( s1(2) )

Question 5

s1(3) of remedies act

Answer 5

if one party has obtained valuable benefit from the contract before the frustrating event, they may be ordered to pay that back.
the amount awarded is what the court considers just, considering all factors of the case.

Question 6

BP Exploration v Hunt

Question 7

s1(4) of remedies act

Answer 7

expenses (above) can be estimated to include overhead expenses and work performed personally by parties, but this must be reasonable.