frustration

Question 1

what is frustration?

Answer 1

its the general idea that a contract becomes impossible to complete, but not at the fault of either party

Question 2

what case created the idea of frustration?

Answer 2

Taylor v Caldwell

Question 3

what is force majure?

Answer 3

clauses that exclude liability for extraordinary circumstances

Question 4

what are 3 things that could be frustrating events?

Answer 4

-impossibility of performance
-illegality of performance
-radical change in circumstances

Question 5

what 2 ways can impossibility be proven?

Answer 5

-the subject matter of the contract gets destroyed
-the subject matter of the contract becomes unavailable

Question 6

what is a case example of the subject matter being destroyed?

Answer 6

Taylor v Caldwell

Question 7

what is a case example of the subject matter being unavailable?

Answer 7

Jackson v Union Marine

Question 8

what is a case example of the subject matter being destroyed not working?

Answer 8

Tsakiroglou v Noblee Thorl

Question 9

what is a case example of the subject matter being unavailable not working?

Answer 9

Condor v Barron Knights

Question 10

when will illegality work?

Answer 10

if the law changes so that performing a contract becomes illegal it will frustrate the contract

Question 11

what is the case for illegality?

Answer 11

Denny, Mott & Dickinson v James Fraser

Question 12

when will a radical change in circumstances apply?

Answer 12

if a contract is made and a radical change happens before performance the contract will be frustrated as the contract is now pointless

Question 13

what is the case for radical change?

Answer 13

Krell v Henry

Question 14

what is a case example of radical change not working?

Answer 14

Herne Bay v Hutton

Question 15

what are the limits on frustration?

Answer 15

-inconvenient/non-radical change in circumstances
-foreseeable
-self induced frustration

Question 16

what is an inconvenient/non-radical change in circumstances?

Answer 16

if the contract is now more inconvenient or slightly different than before, it does not mean the contract is impossible

Question 17

what is the case for inconvenient/non-radical change in circumstances?

Answer 17

Davis Contractors v Fareham UDC

Question 18

what is a foreseeable event?

Answer 18

if the frustrating event was foreseeable, it will not frustrate the contract

Question 19

what is the case for a foreseeable event?

Answer 19

Amalgamated Investment Property Co v John Walker

Question 20

what is self induced frustration?

Answer 20

if the frustrating event event was due to a voluntary action/choice of one of the parties, it will not be frustrated

Question 21

what is the case for self induced frustration?

Answer 21

The Super Servant Two

Question 22

what are the effects of frustration?

Answer 22

under common law, the ‘loss lay where it fell’, so anything done before frustration should still be owed

Question 23

what cases shows why this is unfair?

Answer 23

Chandler v Webster and Appleby v Myers

Question 24

what Act changed the rules of effects of frustration?

Answer 24

Law Reform (Frustrated Contracts Act 1943

Question 25

what did the Law Reform (Frustrated Contracts Act 1943 change?

Answer 25

-s1(2) says that any money paid at the time of or before the frustrating event is recoverable, and any money meant to be paid but not actually paid is no longer owed -s1(3) says that where no pre-payment was made or payable before the frustrating event but the party has partly performed the contract, some money may be awarded

Question 26

what is the case for the change under s1(2)?

Answer 26

Gamerco v ICMFair Warning (Agency) Ltd