Frustration Flashcards
What happens if the doctrine of frustration is successfully invoked?
The contract is terminated.
Which case was the turning point in the development of frustration?
Taylor v Caldwell.
What is frustration by illegality and a case example?
Where performance of an obligation under a contract becomes illegal as in Metropolitan Water Board v Dick, Kerr and Co.
What is frustration by impossibility?
Where performance has been made excessively onerous due to adverse changes.
What happens under destruction of subject matter and give a case?
Contract is avoided if goods perish due to no fault of the seller or buyer.
Asfar v Blundell.
What happens under unavailability of subject matter?
The greater the extent of unavoidability the more likely performance is held to be frustrated.
What is frustration of purpose and two cases?
Where the mutual purpose of the contract has been frustrated.
Krell v Henry
Chandler v Webster.
What is self-induced frustration treated as?
Breach of contract.
What happens if the defendant has a choice of which contract to frustrate?
There will be a breach of contract and the contract will not be terminated.
What happens where negligence caused a calamitous event?
The contract will not be terminated.
What happens if an event is foreseeable but the parties make no provision in respect of it?
They are held to have taken the risk.
What happens if a contract is frustrated under common law?
Contract is terminated or discharged.
Parties obliged to make payments which fell due prior to frustration.
No expenses can be recovered.
What does section 1 (2) of the Law Reform (Frustrated Contracts) Act 1943 state?
Money which fell due prior to frustration ned not be paid, and money paid before frustration can be recovered. The court can allow parties to retain payments to cover expenses.
What does section 1 (3) of the Law Reform (Frustrated Contracts) Act 1943 allow?
Recovery of a sum equal to a valuable benefit obtained by the other party in the event of frustration.
