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Flashcards in Frustrated Contracts Deck (18):
1

Rule in Paradine v Jane:

If a person binds themselves to a contract, then that person is absolutely bound.

2

Doctrine of Frustration:

Paradane v Jane mitigated when the frustrating events:

- Were not thought about when the contract was made.
- Fundamentally changed the contract
- Events occur which neither party is responsible for
- Results in a situation which neither party would wish to be bound.

3

Case which doctrine of frustration emerged:

Taylor v Caldwell

4

Examples of Frustration:

- Destruction of object essential to performance of contract
- Personal incapacity
- Non-occurrence of specified event
- Supervening illegality
- Government interference
- Delay

5

Destruction of object essential to performance of contract

Taylor v Caldwell

6

Personal incapacity

Condor v The Barron Knights

7

Non-occurrence of specified event

Krell v Henry 'the coronation and the flat'

8

Supervening illegality

Denny, Mott and Dickson v James B Frasier

9

Government interference

Metropolitan Water Board v Dick Kerr

10

Delay

May frustrate contract: Jackson v Union Marine insurance

11

Situations where frustration has been held not to occur:

- Because performance was expensive
- Alternative mode of performance is possible
- Frustration is self-induced
- Provision is made in the contract for frustrating event

12

Performance was expensive:

David Contractors v Fareham UDC

13

Alternative mode of performance is possible:

Tsakirogiou v Noblee and Thorn

14

Frustration is self-induced:

The Super Servant Two

15

Provision is made in the contract for frustrating event:

Jackson v Union Marine

16

Effect of Frustration

Renders contract void from the moment of frustration. Parties keep any gain made before frustration.

17

The 'Void from the moment of frustration' rule was contrasted in the ruling of:

The Fibrosa Case

18

Parliament Legislation which reformed law on Frustrated Contracts:

Law Reform (Frustrated Contracts) Act 1943