Frustration

Question 1

If a party has assumed an absolute obligation, even if circumstances make performance of this obligation impossible, they are liable for breach of contract

Answer 1

Paradine v Jane

Question 2

A contract is frustrated when:

Taylor v Caldwell

Answer 2

• a supervening event; which
• is unforeseen;
• is outside the control of the parties (Maritime Fish); and
• renders the contract impossible to perform, or radically different (Davis Contractors v Fareham)

Question 3

Unavailability of a specific person vital to the contract will frustrate contract

Answer 3

Condor v Barron Nights

Question 4

Unavailability of specific thing vital to the contract will frustrate contract

Answer 4

Taylor v Caldwell

Question 5

Non-occurence of a fundamental event will frustrate contract

Answer 5

Krell v Henry

Question 6

Government intervention may frustrate contract

Answer 6

Metropolitan Water Board v Dick Kerr

Question 7

Delay may frustrate a contract

Answer 7

Met Water Board v Dick Kerr

Question 8

Illegality may frustrate a contract

Answer 8

Fibrosa v Fairbairn

Question 9

An event that was foreseen or should have been foreseen will not frustrate a contract

Answer 9

Davis Contractors v Fareham

Question 10

Prices going up or contract becoming more expensive/difficult to perform will not frustrate contract

Answer 10

Davis Contractors v Fareham

Question 11

An essential person being unavailable for an insignificant period will not frustrate contract

Answer 11

(no authority for this)

Question 12

If an event is not directly related to objective of contract, it will not frustrate contract

Answer 12

Herne Bay Steamboat v Hutton

Question 13

If event is in any way self-induced, will not frustrate contract

Answer 13

The Super Servant Two

Question 14

National Carriers v Panalpina

Answer 14

Not being able to use property for 2/10 years was held not to be a frustrating event

Question 15

If frustrated, contract is automatically discharged/terminated

Answer 15

Fibrosa v Fairbairn

Question 16

if frustrated, future obligations cease

Answer 16

Krell v Henry

Question 17

Money paid before the frustrating event is recoverable

Answer 17

s.1(2) LR(FC)A 1943

Question 18

Money payable before frustrating event need not be paid

Answer 18

s.1(2) LR(FC)A 1943

Question 19

Expenses incurred by payee are recoverable if
incurred for performance of contract
is subject to price ceiling

Answer 19

s.1(2) LR(FC)A 1943

Gamerco

Question 20

If there is any valuable benefit that survives the frustrating event, court may order a ‘just sum’ to be paid with regard to all the circumstances

Answer 20

s.1(3) LR(FC)A 1943

Question 21

Valuable benefits must be ‘benefits accrued in, or for the purpose of the contract’

Answer 21

s.1(3) LR(FC)A 1943

Question 22

Size of valuable benefit is value of benefit to recipient at time of event and will take into account expenses awarded under s.1(2)

Answer 22

s.1(3) LR(FC)A 1943

BP Exploration Co v Hunt