Frustration 3B

Question 1

What does Taylor v Caldwell say about Frustration?

Answer 1

Frustration will end a contract when performance of the contract has been made impossible, and this is not the fault of the parties.

Question 2

What is a force majeure clause?

Answer 2

This is an express term in the contract excluding liability where performance is not complete due to ‘extraordinary events’.

Question 3

What must there be in order to prove frustration?

Answer 3

There must be a frustrating event to end the contract.

Question 4

What does Jackson v Union Marine say?

Answer 4

Where the subject matter becomes unavailable, it will be impossible to complete the contract.

Question 5

What does Taylor v Caldwell say about performance?

Answer 5

Where the subject matter is destroyed, it will be impossible to complete the contract.

Question 6

What does Tsakiroglou v Noblee Thorl say?

Answer 6

it being harder to make the subject matter available is not enough, it must be impossible.

Question 7

What does Condor v Barron knights say?

Answer 7

If it is not possible to be performed safely, it is impossible. (ONLY USE FOR MEDICAL)

Question 8

What does Denny, Mott & Dickson v James Fraser say?

Answer 8

Because the action (sale of timber) had become illegal, the contract had been frustrated.

Question 9

What does Krell v Henry say?

Answer 9

The contract can be frustrated if there is a radical change in circumstances which makes the contract pointless.

Question 10

What does Herne Bay v Hutton say?

Answer 10

If one purpose of the contract can still be performed then it is not pointless and therefore cannot be frustrated.

Question 11

What does Davis v Fareham say?

Answer 11

If the circumstances are just less
convenient, this is not enough for frustration.

Question 12

What are the two ways frustration can be limited?

Answer 12

If the frustrating event was/could have been foreseen by the party.
And
If the frustrating event was due to a voluntary action/choice of one of the parties.

Question 13

What case is used for Foreseeable?

Answer 13

AIP v John Walker

Question 14

What does AIP v John Walker say?

Answer 14

The frustrating event was a common risk and the party should have known it could happen therefore no frustration.

Question 15

What case is used for self- induced?

Answer 15

The super servant two

Question 16

What does the super servant two say?

Answer 16

The party had a choice and put themselves in a position where it became impossible to complete the contract therefore no frustration.

Question 17

What does s1(2) of the Law Reform (Frustrated Contracts) Act 1943 say?

Answer 17

Money paid before the frustrating event is recoverable, minus any just expenses. Also, any money meant to be paid after the event ceases to be owed.

Question 18

What does s1(3) of the Law Reform (Frustrated Contracts) Act 1943 say?

Answer 18

Where no prepayment was made or was payable before the frustrating event, but the contract had been partly performed, some money may be awarded to repay any expenses.

Question 19

What is Gamerco an example of?

Answer 19

S1(2) LR (FCs) A 1943