Discharge of a contract: Frustration

Question 1

When does a frustrated contract occur?

Answer 1

When an unforeseen event prevents the absolute performance of the contract.

Question 2

What situations was it made for?

Answer 2

situations that arise which make future performance:
illegal
impossible
fundamentally different

Question 3

Impossible-

Answer 3

Subject matter destroyed - Taylor v Caldwell

Either party dies

Question 4

When do obligations still remain?

Answer 4

Where a party induced the event
If event is provided for in contract
Where event should have been foreseen

Question 5

What does the Law Reform (Frustrated Contracts) Act 1943 state about money paid before the event

Answer 5

It is recoverable

Question 6

What does the Law Reform (Frustrated Contracts) Act 1943 state about money payable before the event

Answer 6

No longer owed

Question 7

What does the Law Reform (Frustrated Contracts) Act 1943 state about expenses that have occurred?

Answer 7

Payment can be ordered by court

Question 8

What does the Law Reform (Frustrated Contracts) Act 1943 state about gaining benefit from the event.

Answer 8

Payment may be ordered by court

Question 9

Taylor v Caldwell

Answer 9

Music hall destroyed. Frustration by impossibility