Frustration Flashcards
(27 cards)
Frustration
Doctrine of frustration applies when a change of circumstances transform the contract into something radically different from that which the parties undertook when they entrees into the contract
Frustrated from point of supervening event
Paradise v Jane 1647
Contractual obligations were considered absolute and a frustrating event had no impact on the parties obligations
Taylor v Caldwell 1863
Doctrine of frustration emerged
Music hall burned down
“An implied condition that the parties shall be excused in case…performance becomes impossible - Blackburn J
Now replaced by a radical change in circumstances
Davis contractors v fare ham urban district council 1956
Lord Radcliffe
~> frustration is not to be invoked lightly as the dissolvent of a contract’
Contract not frustrated just because it would take longer to complete does not relieve the contractors of their obligation
Thought the houses would take 8 months actually took 22 and cost more
Davis contractors v fareham
Lord Radcliffe quote
Lord Radcliffe
~> “there must be such a change in the significance of the obligation that the thing undertake would, if performed, be a different thing than contracted for”
Krell v Henry
Not allowed to cover balance of rent as coronation was ‘foundation of the contract’
Herne bay steam boat co v Hutton
Could still use the boat for pleasure, hired at hutton’s risk
Tsakiroglou co ltd v noblee thorl GmbH
Closure of a canal meant journeys would be longer and more expensive
Contract made before closure deemed not frustrated, if performance is still possible the fact it’s more expensive is irrelevant
Not simply awarded for a bad bargain
Amalgamated investment and property xo ltd v John walker and sons
Redevelopment of buildings bought became difficult due to it being listed dos not mean that there was no purpose to contract it just wasn’t as lucrative as expected
Gold group properties Ltd v bow trading Ltd
Not frustrated due to a fall in house prices
Performance not impossible
No supervening event
Self induced frustration
Where a party has a choice
Maritime national fish ltd v ocean trawlers ltd
Canadian government granted 3 licences but they had 5 ships
Not frustrated as they had a choice of which ships they chose
The super servant two
Sinking did not frustrated the contract as they chose to use the super servant one on another contract
Foreseeable events
Contract not frustrated if event is foreseeable
Any person of ordinary intelligence would regard as likely to occur
~> Treitel
Four seasons Healy care v Maughan (2004)
Suspended for abuse
His contact expressly foresaw the possibility he might be accused of abuse and provided for disciplinary proceedings
Not frustrated until conviction so entitled to pay before this point
Contract not treated as if never happened
Loss should lie where it fell Andy payments before event are not recoverable
Fibrosa v fairbairn 1943
Advanced payments recoverable of total failure of consideration
Ban on traded for with the enemy
Appleby v Myers
Premises holding machinery destroyed in a fire
Because payment was not contracted to pay until completion, not entitled to payment for s portion unless prevented from completion by employer
Bayne v walker
Where an ac of God prevents completion neither party has a remedy against the other
Cutter v Powell
Plaintiff died part way through voyage
His estate argued for payment based on quantum merit
Not completed and payment due on completion so not entitled to any money
Law reform (frustrated contracts) Act 1943
S1(2) entitles a person to recover money pis under a contract prior to frustrating event
Mckendrick- ‘grave deficiencies’ are still there in LR
BP v Hunt
S1(3) valuable benefit
Goff J - provision itself may not be a valuable benefit but the end result might be
In appropriate cases end product may be the valuable benefit
BP already gone to some research expense so were entitled some of it
Gamerco v ICM
Venue declared unsafe so gamerco were entitled to their money back
Courts discretion
Justice not equality
Robinson v Davison
Piano player booked to perform but was ill on the day