Frustration

Question 1

What is frustration?

Answer 1

Where an unforeseen event after contract formation makes performance impossible, illegal or radically different.

Question 2

Destruction of subject matter

Answer 2

case: Taylor v Caldwell (1863) Music hall destroyed.

Principle: Impossibility = frustration.

Question 3

Frustration of purpose

Answer 3

case: Krell v Henry (1903) Room rented to view coronation. Purpose defeated.

Principle: Contract frustrated if purpose is destroyed.

Question 4

Partial frustration

Answer 4

case: Herne Bay v Hutton (1903) Purpose not entirely frustrated.

Principle: If part of purpose remains, frustration fails.

Question 5

Mere difficulty not enough

Answer 5

case: Davis Contractors (1956) Cost overrun frustration.
Principle: Hardship/delay alone do not frustrate a contract.

Question 6

Modern Limits

Answer 6

case: Canary Wharf v EMA (2019) Brexit not frustration.
Principle: Contract still possible = no frustration.

Question 7

Illegality = Frustration

Answer 7

case: Fibrosa v Fairbairn (1943) War made export illegal.

Principle: Illegality frustrates contract.

Question 8

Principles.

Answer 8

Unforeseeable event

Occurs after formation

Not self-induced

Radically alters obligation

Question 9

Statutes

Answer 9

Law Reform (Frustrated Contracts) Act 1943

s.1(2): Money paid is returnable

s.1(3): Compensation for benefit retained