frustration

Question 1

what are the 4 ways in which a contract may be frustrated?

Answer 1

• impossibility of performance
• radical change in circumstances
• illegality of performance
• frustration is specific situations

Question 2

principle from Taylor v Caldwell?

Answer 2

where the parties would usually be bound, if there was an unforeseeable, intervening act, the parties would be received of obligation, cannot be in either parties contemplation

Question 3

cases and rule for frustration by impossibility of performance?

Answer 3

e.g.
death
or illness (Robinson v Davidson)
- Jackson v Union Marine Insurance

Question 4

case for frustration by illegality?

Answer 4

Metropolitan Water Board v Dick Kerr

Question 5

rule and cases for frustration by radical changes in circumstances

Answer 5

a supervening event makes performance or contract pointless though technically possible
Krell v Henry
Herne Bay Steam Boat Co. v Hutton

Question 6

cases for frustration in specific circumstances?

Answer 6

leases = National Carriers v Panalpina
employment contracts = Condor v The Baron Knights

Question 7

what are the circumstances when frustration will NOT be held to have occurred in limitations of the doctrine?

Answer 7

• contract makes provision for such an event
• contract merely becomes less profitable
• event was/should have been foreseen
• self-induced frustration

Question 8

case and rule for no frustration when contract makes provisions for such an event?

Answer 8

no frustration when performance has just become more onerous or more expensive than expected
tsakiroglou v Noblee Thorl

Question 9

case for no frustration when foreseen/foreseeable?

Answer 9

Davis Contractors v Fareham UDC

Question 10

case for no frustration when contract becomes less profitable?

Answer 10

Gold Group Properties v BDW

Question 11

cases and rule for self-induced frustration?

Answer 11

no frustration by an event which is the fault of one of the parties
Maritime National Fish v Ocean Trawlers
The Super Servant

Question 12

what are the legal consequences of frustration?

Answer 12

• termination o fa frustrated contract
  -termination is from point where the frustrating event took place
• the contract is then discharged
• obligations from that point on don’t exist
  BUT
• contract is not treated as though never existed
• acts before frustration have legal consequences
• contract isn’t treated at void

Question 13

what are the common law consequences of frustration?

Answer 13

• any advance payments cannot be recovered
• any payments due after aren’t payable

Question 14

s1(2) and case from The Law Reform (Frustrated Contracts) Act 1943?

Answer 14

s1(2) =
- the obligations to pay money; and
- the recovery for work already undertaken
Gamerco SA v ICM

Question 15

s1(3), case and 2 part test from The Law Reform (Frustrated Contract) Act 1943?

Answer 15

s1(3) =
1. the court must be satisfied of the existence of a valuable benefit gained by one party
2. once established the courts decide the appropriate sum to award. the sum cannot exceed the value of the actual benefit
BP Exploration v Hunt