Frustration Flashcards
(14 cards)
Definition of frustration
After a contract is made, something arises that is no fault of the parties to make its performance impossible.
When must the event occur?
After the contract is made
What are the 3 routes to frustration
Impossibility, Illegality, and Pointlessness
How can impossibility lead to frustration?
5 points - M.U.D.D
the method of performance could be unavailable, death of a party, unavailability of a party, and the destruction of something integral to the contract
Nickoll and Knight v Ashton Edridge [1901]
key case for method Impossibility
a contract stipulated the use of a certain ship, but it became damaged meaning the contract was frustrated.
Robinson v Davison [1871]
Key case for unavailability impossibility
pianist could not perform due to illness therefore frustrating the contract.
How can pointlessness lead to frustration?
Cause for contract becomes pointless.
Krell v Henry [1903]
Key case for Pointlessness
Flat rented to watch king’s coronation, but the coronation was postponed
contract could be performed but the foundation of contract had been removed.
How can illegality lead to frustration?
Changes in the law make completing a contract illegal.
Celestial Aviation v UniCredit [2024]
Key case for illegality
Court of Appeal overturned high court ruling as Russia sanctions DID affect obligation to pay - it was illegal due to the Russo-Ukraine conflict.
What does NOT amount to frustration?
5 items - C.F.C.T.F
Contractual provision (provisions made in the contract in the case of the event)
Foreseen and foreseeable events
Contract becomes more onerous (difficult)
Temporary events
Fault of the parties
What happens when a contract is frustrated?
Termination of contract,
Obligations discharged,
But contract is NOT void from beginning due to potential legal implications
What is the common law view of remedy for frustration?
Parties should ‘lie where they fell’
- Chandler v Webster
What is the statutory view on remedy for frustration?
Law Reform Frustrated Contracts Act 1943 -
Recovery of monies, compensation, and or financial readjustment
